Navigating the world of trust fees is more complicated than many fiduciary firms anticipate. While setting a fee schedule may seem like a straightforward exercise, it often reveals a series of underlying challenges—from competitive pressure to legacy pricing, inconsistent practices, and unclear value propositions. These issues can quietly erode both profitability and client trust if not addressed with strategic clarity.
Many trust companies and banks still rely on legacy fee schedules developed years ago. These models were often designed for a very different competitive environment and a narrower range of services. As a result, firms today find themselves applying outdated structures to increasingly complex client needs, creating pricing models that may no longer align with the actual value delivered—or with current client expectations.
Another common issue is inconsistency in fee application. Whether it’s discretionary waivers, negotiated exceptions, or informal “loyalty discounts,” many institutions struggle to maintain discipline in how trust fees are implemented. Over time, this lack of consistency can undermine revenue predictability and lead to perceptions of unfair treatment among clients. Firms may find themselves losing credibility when similar clients are charged significantly different rates for similar services.
External competition only adds pressure. Clients are more fee-conscious than ever and often come into the relationship armed with online research or comparisons from other providers. Competing on price alone, however, can be a race to the bottom. Instead, firms need to clarify how their fees reflect the breadth, complexity, and quality of service provided—especially when compared with industry peers. Conducting an informed pricing review can help reposition the firm’s value in the eyes of clients, without defaulting to unnecessary fee cuts. To start benchmarking where you stand, visit our Price Comparison page for more context.
Even when a firm is delivering exceptional value, communicating that value effectively can be a challenge. Trust administration is often viewed as a commodity, yet the risks, responsibilities, and regulatory scrutiny involved are anything but. Demonstrating how fiduciary expertise, personal service, and institutional reliability are built into trust fees is critical to reinforcing client confidence. Without this communication, clients may see the fees as arbitrary or inflated.
Additionally, internal discomfort with fee discussions can keep front-line staff from addressing pricing confidently—or at all. Relationship managers or administrators may hesitate to have difficult conversations around trust fees, especially in competitive or sensitive family wealth scenarios. This hesitation can result in unintentional undercharging or missed opportunities to align fees with the value delivered. Empowering staff with the right tools and messaging is key to overcoming this challenge.
Ultimately, trust fee structures should be more than a number on a schedule. They should reflect a firm’s values, risk exposure, service model, and competitive positioning. Thoughtful pricing strategies, informed by data and aligned with client needs, are not just a revenue lever—they’re a signal of professionalism and long-term sustainability.
