What Is Trust Administration?
So, what is trust administration? A legal trust is created when an individual drafts a trust document that puts the care of his assets in the hands of another person. This “other person” is called the trustee, and his job is to manage the assets for the benefit of beneficiaries (often the spouse or children of the person establishing the trust). The trustee manages the assets in accordance with the instructions provided in the trust document.
Trust administration begins once the trustee begins to follow the instructions in the trust. This can be complicated, and it often requires legal advice to properly carry out the terms of the trust in accordance with the law.
Justin M. Gilbert has experience assisting trustees in administering the trust and can help guide the trustee in making prudent and legal decisions.
Follow the terms of the legal Trust: The trustee must read and understand the trust document to know what the creator set forth. The trustee must follow the requests outlined in the document. This may involve making regular payments to the beneficiaries for their education, medical, and/or living expenses as set forth in the trust.
Act in the best interests of the Trust: The trustee must put the interests of the trust above his own. He may not make loans to himself from the trust or use it for his own benefit. He must avoid conflicts of interest. It could very well be inappropriate for the trustee to hire himself or his family to perform other services for the trust, as this could create legal problems in the future. Any such decisions should be discussed with a Tennessee trust administration attorney to determine if his actions are legal or prudent.
Safeguard the Trust Assets: The trustee is expected to invest the assets of the trust to protect the value of the trust.
Pay taxes and other expenses: Taxes on trust income, bond expenses, and other bills must be paid by the trustee.
The first step towards understanding the components of managing a trust is knowing the answer to the question, “what is trust administration?” Now that you have read all about it, you can take the next step and get in touch. If you or a loved one needs assistance with trust administration, contact the Law Office of Justin M. Gilbert to discuss your situation and enlist knowledgeable legal counsel.