What is a trust administration?

A trust administration is a process of managing a trust created by a person, known as a grantor, to provide for the care of their assets to benefit people they designate, such as family or charities. It is generally handled by an individual appointed by the grantor or by a court if the grantor is no longer able to oversee it. In California, trust administration is done in accordance with the state’s Trusts and Estates laws, which designate the rights and duties of a trustee. The trust administrator, or trustee, is responsible for following the wishes of the grantor, who typically includes instructions in the trust document outlining purpose, assets, and beneficiaries. These can include instructions for how the trust assets must be invested and distributed. The administrator is responsible for providing accurate and timely accountings and ensuring that the trust assets are managed ethically and with prudence. In addition to managing the trust assets, the administrator must also account for income taxes, file annual reports, and end the trust when the grantor has passed away or the term of the trust has been fulfilled. The trust administrator must also determine if any other related legal documents such as wills need to be updated to reflect changes in the trust. Overall, trust administration is a complex process that involves managing a grantor’s assets to benefit designated beneficiaries in accordance with State law. It is an important part of estate planning, and those who serve as trust administrators have a legal and moral responsibility to act in the best interests of both the grantor and beneficiaries.

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