Estate administration and trust administration are both processes that involve the management and distribution of assets. However, they differ in some key ways.
Estate administration is typically a shorter-term process that occurs after a person has died and involves distributing their assets according to their will or state laws. On the other hand, trust administration is a longer-term process that involves the management and distribution of assets according to the terms of a trust agreement.
A trust is a legal arrangement in which a person (the grantor) transfers ownership of their assets to a trustee, who manages the assets for the benefit of one or more beneficiaries. The trustee is responsible for holding and managing the assets in accordance with the terms of the trust agreement, as well as any applicable laws.
In terms of accounting, the trustee is responsible for keeping accurate financial records and providing regular reports to the beneficiaries, as well as any required reports to the court. This may include preparing intermediate and final accountings, as well as a plan for the distribution of any remaining assets at the end of the trust.
Overall, the role of the trustee is to administer the trust in a responsible and transparent manner, preserving the assets and ensuring that they are distributed according to the terms of the trust agreement and any applicable laws.