Introduction to Personal Trust Reporting Services

Introduction to Personal Trust Reporting Services

Personal Trust Reporting Services (PTRS) provides trust accounting and back-office support, including principal and income trust reporting and recordkeeping for advisors who serve individual trustees.

  • Integrated trust accounting and trading platform for trust and non-trust assets
  • Detailed trust accounting, including automated separation of principal and income
  • Payment of scheduled disbursements to beneficiaries and third parties (calculated and fixed)
  • The ability to process journals, wires, checks and Schwab MoneyLink® disbursements using Move Money and the ability to code detailed principal and income, tax information and comments for those disbursements
  • Trust accounting reports, including a brokerage statement with supplemental trust reporting and a separate Trust Report
  • The tax worksheet for trustees or tax preparers with trust tax and expense reporting, supplementing the brokerage 1099
  • Recordkeeping of personal tangible and intangible property (owned by the trust but not held by Schwab (e.g., art, collectibles, LP interests, etc.)), are reported and displayed on Schwab Advisor Center® as "assets held elsewhere" Tooltip
  • Available principal and income aware interface to Advent software
  • A dedicated team of trust professionals who work with your service team to answer your questions and support your practice
  • To enroll in Personal Trust Reporting Services, follow the appropriate enrollment procedures. PTRS can help manage certain client accounts.

One integrated platform for trust and non-trust assets

View trust balances, positions, history, profiles, and reports along with all non-trust assets in one location—SchwabAdvisorCenter.com (SAC).

Payment of the trust's disbursements

 

 

 

 

 

 

  • Request a check, journal, MoneyLink, or wire disbursement via the One Time Link or the Use SLOA Link.
  • Create a SLOA for a check, journal, MoneyLink or wire.
  • View check, journal, and MoneyLink requests are set up in the Trust Accounting System.
  • View Trust Income and Principal balance in the Input Data Page when processing a disbursement.
  • An option to choose a Paid For contact when processing a disbursement. The Paid For contact will give the choice of Owner (Trust), Trustee, Co-Trustee, and Tax Beneficiary.
  • An option to choose if the cash deposit is coded as Principal or Income and the ability to select a deposit related Tax Code when processing a Journal disbursement to a PTRS enrolled account.
  • The ability to use E-Authorization or print a Letter of Authorization for the client to sign before completing a one-time disbursement request.

If you choose not to use the Move Money functionality on SAC you can provide the Personal Trust Reporting Services Disbursement Instructions and Authorization form to your service team.

Payment calculation and timing

You can request scheduled or calculated disbursements. For example, a quarterly distribution paying out a percentage of income to a beneficiary can be scheduled and automatically processed on a recurring basis.

Trust accounting update, monitoring coding, and verification of transactions

  • Trust accounting data updates nightly and shows information from the previous day. You can also see balances, positions and transactions in real-time on the brokerage tabs on SAC.

  • Schwab's trust team reviews reports for transactions not coded accurately, provides reports to help correct them, and works with your service team to resolve them quickly.

Recordkeeping of assets held elsewhere

Reporting assets held by the trust but not in custody at Schwab can assist your clients by reporting on all of the trust’s assets. Your firm will be authorized to provide the details of any personal and real, tangible and intangible property your client wishes to report. You will be able to provide valuation updates for these assets when it is convenient for you.
Report name Distribution method Frequency Additional information
Trust Report
  • Report is available on the Documents tab on SAC.
  • Save and print the report for clients.
  • Schwab distributes the report to advisors only.
  • Monthly (default)
  • Quarterly
  • Annually
Complete the Personal Trust Reporting Services Trust Report Preferences form to specify preferences.
Consolidated Trust Report Schwab forwards to advisor by secure email.
  • Monthly (default)
  • Quarterly
  • Annually
  • Trustees can consolidate multiple identically registered accounts into one trust report.
  • Report consolidates assets in the summary, investment detail, and realized gain (loss) sections, and details transactions in principal and income categories.
  • Advisor completes the Personal Trust Reporting Services Trust Report Preferences form to specify trust report preferences.
Combined Brokerage Account Statement and Trust Report
  • Replaces the stand-alone brokerage account statement.
  • Schwab distributes per the client’s current statement delivery method (i.e., paperless documents or mailed to address of record).
  • Report is included in Additional Mailings.
  • Report is available on the Documents tab on SAC.
Monthly, with client account statements if there is any position or balance (including negative cash balance), regardless of activity
Pricing schedule*  
First $3 million 7 basis points
Next $7 million 5 basis points
Over $10 million Negotiable
Minimum annual fee $500  

 

* Note that the value of assets held in the trust, but not custodied with Schwab (i.e., assets held elsewhere), will not be included in the asset-based pricing calculation.

Why would my client need detailed trust (principal and income) reporting?
Irrevocable trusts need portfolio assets to be separated by principal and income (P&I). Disbursements, receipts, and fees need to be allocated to principal or income. Often, remittances to beneficiaries require calculation based on a percentage of income.

 

What is the trust report and to whom is it available?
Your client will continue to receive their standard Schwab monthly statement. The trust report is created out of the trust accounting system and is a supplemental report. The trust report displays asset composition, income summary, principal and income cash transaction summary, cost basis, estimated annual income, and principal and income cash balances, and it indicates principal and income transactional breakdowns and realized gain (loss) information. The trust report will be available to you via the Documents tab on SAC. You can then distribute the report to the trustee or other interested parties upon the trustee's request.

 

What is the difference between PTRS and Administrative Trustee Services?
PTRS provides trust accounting and back-office support, including principal and income trust reporting and recordkeeping for advisors who serve individual trustees. The trustee of these accounts may be a friend or family member of the grantor or, in some cases, the advisor, a CPA, or an attorney. Administrative Trustee Services offers corporate trustee services to advisors and their clients, where Charles Schwab Trust Company of Delaware serves as administrative trustee, while the advisor manages the investments.

 

How does trust accounting work with the Schwab Advisor Services™ platform? The trust accounting system is integrated with Schwab's existing platform, including SAC. Once enrolled in PTRS, you will have the ability to view trust balances, positions, tax lots, transactions, trust-related profile data, and trust reports via SAC. SchwabAlliance.com currently does not display the accounts’ trust-related data.

 

How often is trust accounting data updated?
Trust accounting data is updated nightly and shows information from the previous business day. Real-time balances can be seen by viewing the brokerage version of the account.

 

Does PTRS support downloads to third-party software?
Yes. You will be able to continue to download data for accounts you enroll in PTRS. Advent users will also be able to access a principal- and income-aware transaction and reconciliation feed (only available for Advent users who use the income cash-tracking feature).

 

What is the enrollment process? The PTRS enrollment process is explained in How to enroll in and make adjustments to Personal Trust Reporting Services.

 

How is PTRS supported?
You will be supported by your existing service team. A trust team supports the trust accounting system and related interfaces. The trust team also works closely with the service team to answer trust-related questions or provide second-tier support for you on detailed trust recordkeeping-related questions.

 

Will I be required to establish a new trust account to receive PTRS? Assuming your client already has a trust account open at Schwab, no new accounts require opening. If your client does not have an account at Schwab, a new trust account would have to be established (using Schwab’s standard account opening process) to participate in this service.

 

Will I be required to establish a new master account? You will be required to establish a new master account only if you want to upload the PTRS data to third –party software (Advent). Otherwise, you will not need a new master.

 

Can non-trust accounts be aggregated into the trust account system? This is considered on a case-by-case basis. If it is determined that a non-trust account can enroll in PTRS, supplemental non-trust forms must be completed by the advisor and the trustee. Contact your service team for more information.

 

What authorizations will I have over the account?
The PTRS product does not change authorizations you have over the enrolled accounts.

 

Who monitors the transaction tax coding and how transactions are allocated between principal and income?
Standard principal and income mapping is followed per the Enrollment terms and conditions. If transactions are not coded correctly in the trust accounting system, you and the service team should review and provide the additional data to the Trust Team. The Trust Team will be responsible for updating the trust accounting system with the correct transaction data.

How to customize Schwab reporting

How to enroll in and make adjustments to Personal Trust Reporting Services

How to establish a Schwab MoneyLink® profile

How to open a trust account

Introduction to Administrative Trustee Services

Introduction to cost basis reporting

Introduction to the Balances, Positions, and Transactions tabs

Introduction to the Move Money tool

Introduction to the Profiles tab

Informational brochures
PTRS forms
Sample reports

See the Trust glossary for a definition of the trust terms used in this article.