My husband and I looked at a couple of other trust products, one through a bank and one through an insurance company. DDETF was considerably less expensive to manage and had the backing of our state government, which made it feel very secure. It has been a great move for us and our daughter. Also, very easy to use.
Account fees are deducted from the private contribution balance and credited back to the trust accounts in the form of State Matching Funds. More information about account fees are on this page.
Although a beneficiary may have more than one account, only the first account opened qualifies to receive the match on fees.
Enrollment fee
There is a one-time enrollment fee of $600. This is a fee to open the account. With the current incentive, the account will open with a $600 balance in State Matching Funds.
Tax return preparation and filing fee
DDETF is required to prepare and file an annual individual tax return for each trust account. Currently, the annual tax preparation fee is $75.00. The fee is 100% credited back on their first trust account.
Annual management fee
One year after the initial contribution (and yearly thereafter), the account will be charged an annual management fee of $75 or 1% of the account’s balance, whichever is greater. The fee will not exceed $750 per year. The state currently credits back $75 of the annual management fee per year on a client’s first account.
Incentives to participate
DDETF and its partners are able to keep costs to a minimum with sound oversight and management. This allows more dollars to go towards the beneficiary’s financial future, instead of costly fees.
Although the fees for the program are minimal and lower than most managed trusts, we are currently crediting back to the trust account with additional incentives:
- 100% of the initial $600 enrollment fee.
- 100% of the annual $75 tax preparation and filing fee.
- $75 of the 1% annual management fee (which is no lower than $75 and no higher than $750).
Qualifications to receive current incentives
- Minimum contribution requirement – The minimum contribution requirement to keep an account in good standing, and qualify for the incentives on the fees, is to invest a minimum of $25 a month. Contributions may be made on a schedule that meets your needs. This can be monthly, periodically or annually.
- Three-year vesting period – An account becomes vested by accumulating a minimum of $25 per month of private contributions for three consecutive years. Contributions in excess of $25 per month may be applied to future months for the purpose of qualifying for current incentives, but may not be applied to past months for vesting purposes.
An account must meet both the minimum contribution requirement and the three-year vesting period requirement before a beneficiary may use the State Matching Funds for disbursement.