What is the purpose of trust administration?
Trust administration is the management and distribution of the assets held in a trust. Trusts are legal arrangements that allow an individual or a group of people, called trustees, to hold and manage assets on behalf of someone else. In Hawaii, trust administration is governed by the Hawaii Uniform Trust Code. The primary purpose of trust administration is to ensure that the trust is used in accordance with the terms of the trust agreement and to protect the trust assets from mismanagement or theft. When a trust is created, the trust agreement identifies the trustee’s fiduciary duty, which is the legal obligation to act in the best interests of the trust beneficiary. Trust administration involves carrying out the instructions set forth in the trust agreement to manage and distribute the trust assets. Trust administration also involves keeping records and filing necessary tax forms and other documents. The trustee must be familiar with state and federal trust laws so that the trust assets are managed and distributed in accordance with the law. Furthermore, the trustee must keep the trust beneficiaries informed of the trust’s activities. Overall, trust administration is an important part of Hawaii’s inheritance law. Trust administration ensures that the trust is used in the manner intended by the trustor and that the trust beneficiaries are protected from mismanagement of the trust assets.
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