The trust industry is experiencing growth. The recent tensions in the world and the financial benefits of using a trust are both contributing factors. After all, the new presidential administration made it more important than ever to make sure your estate plan was in order. In addition to this, recent innovations in money and financial services have led to renewed interest in trust company charters.
The growth of trusts in the 1990s was spurred in part by a large number of baby boomers who were increasing their personal savings. Banks were also playing an important role in the industry, as service fees from trusts became a major revenue stream for banks. In addition, many trusts are now held in foreign countries, which means that trust companies must have extensive knowledge of the laws and regulations in each country.
The fee a trustee charges varies depending on the services provided. In some cases, the fee is a percentage of the assets managed. For example, if a trust generates $50,000 in interest and dividends, the trustee may receive $2,500. Other trustees charge an annual management fee or an activity fee for certain services.
China’s trust industry is one of the world’s largest shadow banking businesses, which helps people channel their savings into risky investments. Many of these activities are designed to skirt capital laws. For that reason, the National Audit Office has been inspecting the books of at least 20 trust companies in the past month.