Bank trust departments are cautiously raising fees

Trust Updates reports on a March survey of fiduciary institutions that revealed trust fees are on the rise. Roughly a quarter of firms raised fees in 2007, with 30% of those with assets over $1 billion doing so. More institutions plan 2008 rate hikes, with bank-affiliated trust departments leading the way. The amount of the fee increases was not disclosed. The primary hesitation to raising fees is the fear of losing accounts.

According to the report, the number of trust accounts has declined in the last five years, but the size of the accounts has increased, with a net result of "consistent asset and gross revenue growth for the industry among all peer groups."