TRUST ADMINISTRATION

Summary

Trust administration is the ongoing process where a trustee (the person or institution appointed to manage the trust) takes over the responsibility of managing and distributing trust assets after the person who created the trust (settlor) dies. Think of it as the 'active phase' of a trust where the trustee must follow the specific instructions left in the trust document, make investment decisions, pay expenses, and distribute assets to beneficiaries according to the trust's terms. This process can last for years or even decades, depending on the trust's purpose and structure.

Usage Context

Understanding trust administration is crucial when studying estate planning, trust law, fiduciary relationships, and the ongoing management responsibilities that distinguish trusts from simple wills. This concept is particularly important when analyzing case studies involving trustee liability and beneficiary rights.

Common Confusions

• Confusing trust administration with estate administration (probate process)
• Thinking trust administration automatically begins when the trust is created rather than when the settlor dies
• Assuming all trusts require the same type of administration regardless of their terms
• Believing that beneficiaries have unlimited access to trust assets during administration