What is a trust administration?

Trust administration is the legal process of managing trust assets and distributing them to the trust beneficiaries. In the state of Texas, the process of trust administration is handled by a fiduciary—a person or organization who holds the responsibility to manage the trust assets in accordance with the trust provisions, the law, and the trustee’s fiduciary duties. The trustee of the trust has the duty to take control of the assets of the trust, register assets with the courts, pay debts, manage investments, and eventually distribute the assets to the beneficiaries according to the terms of the trust and the law. Trust administration requires that the trustee act prudently, remain impartial, and disclose information to the beneficiaries if required. Trust administration isn’t just about distribution of assets and can include investment of assets to ensure that they are properly managed and grow over time, as well as filing of taxes, providing accounting of the trust’s finances, and more. The trustee may need to make decisions about how the trust is managed, and those decisions should support the purpose of the trust. Trust administration is an important part of the trust process and it is important to make sure that the trust is administered properly and in accordance with the law. In Texas, this process is overseen by the probate court.

Related FAQs

How do I transfer assets into a trust?
What is the role of an attorney in an estate plan?
What is a tax-free trust?
What is estate tax?
What is a trust fund agreement?
What is a durable power of attorney?
What is a family trust?
What is a special needs trust?
How do I name a beneficiary in a trust?
What are the benefits of estate planning?

What is a trust administration?

Related FAQs

Related Blog Posts