What type of fees are trust officers prohibited from offering?

Trust officers are often prohibited from offering special trust fee rates because such arrangements can present conflicts of interest or appear to create favoritism or unequal treatment among clients. The integrity of the trust management process is paramount, and offering special rates can undermine the perception of fairness and transparency in fee structures.

Standard fee rates, discounted fee agreements, and tiered fee structures are generally acceptable as they reflect traditional compensation models that are standardized or negotiated within defined parameters. These types of fees maintain the objectivity of the trust services provided and help ensure that all clients are treated equitably. In contrast, special trust fee rates can create a situation where trust officers might be incentivized to prioritize certain clients over others, compromising the fiduciary duty they owe to all clients they serve. Having clear and equitable fee structures reinforces trust in the management and administration of trusts, which is essential for maintaining client confidence in the financial system.