Trusts are not empty vessels. They contain trust assets and those assets won’t manage themselves. A trust administrator may be needed to keep a trust humming along. As you explore the possibility of adding a trust to your estate plan, consider adding an administrator.
But what exactly is a trust administrator?
Trust Administrator Defined
In general, a trust administrator is a fiduciary, someone who has been given the power to act for another person or entity. According to Minnesota law, the term fiduciary means:
includes a trustee under any trust, expressed, implied, resulting or constructive, executor, administrator, guardian, conservator, curator, receiver, trustee in bankruptcy, assignee for the benefit of creditors, partner, agent, officer of any corporation public or private, public officer, or any other person acting in a fiduciary capacity for any person, trust, or estate.
A trust administrator, then, owes a duty of care and trust to the beneficiaries of a trust. What kind of authority is a trust administrator taking on, though?
Typical Duties of a Trust Administrator
Responsibilities will change based on the trust document. Generally, though, a trust administrator’s responsibilities include:
- Filing income tax returns. Trusts usually have to file tax returns. A trust administrator will keep an eye on tax issues throughout the year in preparation for filing the trust’s tax return.
- Overseeing investment of trust assets. Some assets are investments that require attention. Trust administrators keep an eye on investments to make sure they are performing in a way that benefits the trust.
- Keep beneficiaries informed. Trust administrators may be called upon to let beneficiaries know how the trust assets are being managed.
- Protecting beneficiary’s interests. As the trust administrator manages the trust, the safeguarding beneficiary’s interests will be a priority.
A trust administrator may be an individual or an organization, like a bank or trust company.
Learn More About How Trusts Can Change Your Estate Plans.
At Virtus Law, we know it can be difficult to talk about estate planning. We also know also how important it is for clients to have complete estate plans. To schedule an appointment with one of our estate planning attorneys, contact us at 612.888.1000 or send an email to info@virtuslaw.com. Our main office is in Minneapolis, with other offices located in Maplewood, Cambridge, Edina, Mendota Heights, and Red Wing.