What Is A Trust Administrator?

Trust administration is the process of managing the creator’s trust after their demise, according to their wishes. One of the most important things to do when creating your trust is to appoint a trust administrator. Your trust administrator will make financial decisions on your behalf to ensure that they are taken according to your wishes.

A trust administrator can be a person or an entity such as your bank or a trust management company. The declaration of trust should specify the duties and responsibilities of the trust administrator. When initially creating your trust, partner with an experienced attorney in Santa Rosa who can help guide you through the complex process.

Duties of a Trust Administrator

The legal duties of a trust administrator can be divided into two categories: general duties and duties as set forth in the trust declaration. If a trust administrator fails to perform their duties, they can be held liable for any resulting losses.

A trust administrator must calculate the total value of the trust property. An administrator is also responsible for filing the trust’s tax return. They must keep an eye out for tax issues throughout the year and keep documents and records needed for tax season organized so the preparation process is smoother and efficient.

A trust administrator must also oversee the investment of trust assets. They must make prudent investment decisions and reduce investment risk. Additionally, they must keep the beneficiaries informed about how the trust assets are being managed and act in their best interest. An administrator must disclose any personal gains made when acting on behalf of the trust.

A trust administrator must keep accurate and detailed records of taxes paid and investments made by the trust. The beneficiaries of a trust have the legal right to review the trust accounts whenever they wish.

A trust administrator might be required to provide the beneficiaries with an account of the funds in the trust at least once a year. Unless specified otherwise in the deed, an administrator must treat every beneficiary equally and fairly and cannot favor one beneficiary over another.

A trust will be terminated after its purposes have been fulfilled. A trust administrator should oversee the termination of the trust. They must handle creditor issues and pay any taxes before the trust is ready to be terminated. After the trust is terminated, the administrator must distribute the funds to the beneficiaries.

Rights of a Trust Administrator

A trust administrator is entitled to compensation from the trust. The declaration must specify the administrator’s remuneration. If a declaration does not specify the trust administrator’s salary, they are entitled to reasonable compensation from the trust.

Johnston & Associates Law is a reputable law firm in Santa Rosa. We will come up with a solution and help you identify products that best fit your estate planning needs. Our team has years of experience working within the legal structure of trust administration. To learn more, call +1(707)-545-6542.