{"id":287092,"date":"2022-05-02T13:10:44","date_gmt":"2022-05-02T18:10:44","guid":{"rendered":"https:\/\/content.findlaw-admin.com\/ability-law\/estate\/trusts\/what-is-trust-administration.html"},"modified":"2025-07-25T12:38:00","modified_gmt":"2025-07-25T17:38:00","slug":"what-is-trust-administration","status":"publish","type":"page","link":"https:\/\/www.findlaw.com\/estate\/trusts\/what-is-trust-administration.html","title":{"rendered":"What Is Trust Administration?"},"content":{"rendered":"\n
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What Is Trust Administration?<\/h1>\n\n
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\n By Olivia Wathne, J.D.<\/a> | Legally reviewed by Aisha Success, Esq.<\/a>\n | Last updated\n
\n \n <\/i>\n Legally Reviewed\n <\/summary>\n\n
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This article has been written and reviewed for legal accuracy, clarity, and style by FindLaw\u2019s team of legal writers and attorneys<\/a> and in accordance with our editorial standards<\/a>.<\/em><\/p>\n\n <\/div>\n <\/details>\n\n

\n \n <\/i>\n Fact-Checked\n <\/summary>\n\n
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The last updated date refers to the last time this article was reviewed by FindLaw or one of our contributing authors<\/a>. We make every effort to keep our articles updated. For information regarding a specific legal issue affecting you, please contact an attorney in your area<\/a>.<\/em><\/p>\n\n <\/div>\n <\/details>\n<\/section>\n\n\n

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Trust administration is the management of trust assets by a trustee for the benefit of a beneficiary. A trust is created when an individual (known as a settlor) places their assets into the care of a third party (known as the trustee) for the benefit of someone else (known as the beneficiary).<\/p>\n\n <\/div>\n\n\n\n

A settlor can transfer assets into a trust when they are living (a living trust) or upon their death (a testamentary trust). In either case, when the settlor dies, the trustee handles the trust administration process, often with the help of a trust administration attorney.<\/p>\n

You might find yourself as the beneficiary or trustee of a trust in the event a family member or loved one dies. For example, if a parent dies while their child is still young, they might leave monetary funds in a trust. These funds will be cared for by the trustee in the name of the trust until the child is old enough to receive the funds.<\/p>\n

In short, a trust provides a space for someone’s assets to be cared for by a third party. These assets can include real estate, bank accounts, IRAs, and personal property. In many cases, trust administration starts as soon as the trustee obtains the decedent’s death certificate.<\/p>\n

Trustees, Beneficiaries, Settlors<\/h2>\n

In trust administration, there are three key players: trustees, beneficiaries, and settlors. Each role is connected to the trust property in some way, but they each play very different roles.<\/p>\n

Trustees<\/h3>\n

Once a trust agreement is created, the\u00a0trustee<\/a>\u00a0has the most time-consuming role. The trustee’s job is to\u00a0hold, manage, and administer the funds in the trust\u00a0on behalf of the decedent’s estate. Their fiduciary duty as a trustee requires them to act in the best interest of the beneficiaries of the trust.<\/p>\n

The duties of a trustee are laid out in the terms of the trust document. While these duties may vary depending on the type of trust, some tasks are common. The first thing a trustee must do is have the trust property identified and evaluated by a property appraiser. The trustee is in charge of asset protection and trust accounting. The trustee is also responsible for distributing the trust’s funds to the beneficiaries.\u00a0<\/p>\n

While the assets remain a part of the trust, the trustee is responsible for any investments that are made, managing real property included in the trust, filing income tax and estate tax returns, and applying for federal estate tax exemptions.<\/p>\n

There are several kinds of trustees:<\/p>\n