Trust Administration is the process of managing assets held within a trust, whether it be revocable or irrevocable. A trust is managed by a trustee who administers the trust in accordance with the directions set forth in the trust instrument. There are many steps involved in administering a trust. The trustee in charge of a trust’s management is required to follow through with administering a trust or risk being held personally responsible.
The trustee must act in a fiduciary capacity, meaning the Trustee must not place his own interest above his duties as Trustee, and may not profit from this position. The trustee’s first obligation is to follow the directions set out in the trust instrument for the benefit of the beneficiaries. Some of the responsibilities required of a trustee are securing and safeguarding assets like rental property, investing the assets in the trust, providing accountings to beneficiaries; remaining in compliance with federal and state tax laws, and determining when and under what circumstances to make distributions to beneficiaries.