Technical article
US$50 Million and Up: Family Office, Private Trust Company, or a Trustee with a Team?
A private trust company is a licensed company that serves one family's trusts.
Imagine a family with US$60 million, as an example. It sits in shares, bonds, some rental property and a stake in a business. A banker mentions a family office. A lawyer mentions a private trust company. A trust firm mentions a directed trustee with a team. Each one sounds right. Each one has a price.
When does each pay for itself? The sources do not agree on one line, so here are the lines they draw.
Where each option starts
| Option | Size the sources mention | Cost the sources give |
|---|---|---|
| Single-family office | About US$100 million is the usual starting point | About 0.98% of assets a year for offices under US$500 million; about 0.42% over US$1 billion |
| Multi-family office | US$10 million to US$75 million, with many near US$20 million to US$30 million | 0.40% to 0.70% a year; US$200,000 to 350,000 at US$50 million |
| Private trust company | Rarely at US$100 million, generally not below US$250 million, most apt at US$500 million (one trade-press writer) | US$200,000 to 500,000 of capital to start, plus set-up fees above US$100,000 at the larger sizes |
| Directed trustee with an outside team | Average trust at one South Dakota firm is about US$30 million | 0.10% plus US$1,000 per line item, minimum US$5,500 a year (one firm) |
The single-family office
A 2024 survey by the asset management arm of Royal Bank of Canada and Campden Wealth covered 183 North American family offices. Operating costs ran about 0.98% of assets for offices under US$500 million. Brown Brothers Harriman says families above US$100 million can consider their own office. Family Office Exchange said the same in 2019.
One investor-community source puts the average at about 0.4% across large offices and calls published thresholds of US$100 million to US$500 million folklore. The same source says a US$20 million office runs about 2.1% a year. These figures come from different samples, so they sit apart.
The multi-family office
Brown Brothers Harriman says families between US$50 million and US$100 million can often get most services from a multi-family office. Its illustration at 0.40% to 0.70% is US$200,000 to 350,000 a year at US$50 million, and US$400,000 to 700,000 at US$100 million. NerdWallet suggests about US$30 million as a minimum. A 2025 Canadian survey found 39% of multi-family offices ask for under US$15 million and 23% ask for US$15 million to US$50 million.
The private trust company
A private trust company is a licensed company that serves one family's trusts. South Dakota asks for at least US$200,000 of capital, a US$100,000 pledged deposit, a US$1 million fidelity bond and US$1 million of directors' insurance. The application fee is US$5,000. Supervision costs 7 cents per US$10,000 of trust assets, with a floor of US$3,750 and a cap of US$20,000. Exams cost US$8,000 to 15,000 and come at least every 36 months. The company needs a South Dakota resident director and an office there. Approval takes about five to nine months across the states that allow these companies. For a family office or private trust company at US$100 million to US$250 million, lawyers' set-up fees are often well above US$100,000, one trade-press author writes.
The trustee with a team
In a directed trust, a licensed trustee handles administration while an adviser, which may be a firm or a family member, runs the investments. One South Dakota trust company lists directed trusts at 0.10% plus US$1,000 per line item, with a US$5,500 minimum. A Deutsche Bank schedule lists US$15,000 a year for a directed administrative trustee.
You could
You could ask each provider for its yearly cost in dollars at your size, in writing, and who is named as the fiduciary for each task. You could ask what it costs to leave.
Has your family sat across a table from a family office or a trust company? Where did they say it began to make sense? Share it here. Someone may benefit from your story.
Figures are estimates for planning, based on public data. Date read: October 2026.
Sources
- RBC Global Asset Management and Campden Wealth, North America Family Office Report 2024 (B)
- Brown Brothers Harriman family office guide, May 2025 (B)
- Family Office Exchange 2019 (B)
- NerdWallet family office guide, March 2026 (U)
- AssetVantage multi-family office minimums, July 2026 (C)
- Equiton multi-family office survey 2025 (B)
- Long Angle family office podcast, May 2026 (C)
- South Dakota Division of Banking private trust company rules (A)
- WealthManagement.com articles of 2014 and 2021 (B)
- JTC South Dakota Trust Company fact sheet, about July 2024 (C)
- Deutsche Bank wealth fiduciary fee policy, November 2025 (C)
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