Trust Administration Fees: Everything You Need to Know
A trust is a legal arrangement in which someone with assets (called a trustor) asks another person (called a trustee) to hold and manage those assets — which often include bank accounts, investments, real estate and corporate holdings — for the benefit of one or more third parties (called beneficiaries). In this kind of arrangement, the trustee is in a fiduciary relationship. This means they’re required to follow the trustor's wishes and instructions for managing the assets of the trust, and they need to make decisions for the benefit and in the best interests of the beneficiaries, not themselves.
Creating a trust is one thing. Administering a trust — actually carrying out the trustor's instructions in a manner that fulfills your fiduciary duty as trustee and complies with all applicable laws — can be challenging. It can also take time and require you to spend a fair amount of money. For that reason, administrators of trusts — this may be you as the trustee or a third-party professional administrator you hire to help you out in complex cases — are entitled to charge trust administration fees.