Trust administration is the process by which a trustee manages and oversees the assets held within a trust according to the terms specified by the person who created the trust, also known as the “settlor.” This process begins upon the death of the settlor or under circumstances outlined in the trust document. The trustee is responsible for notifying beneficiaries, inventorying the trust assets, paying off debts and taxes, and managing the assets to preserve their value.
This can include decisions about selling or investing assets. Finally, the trustee distributes the assets to the beneficiaries in accordance with the trust terms and prepares a final account of all transactions and distributions before formally closing the trust. Trust administration is conducted without the need for court supervision, allowing for a private, potentially faster, and often less costly resolution than the probate process.
