Trust Administration: Responsibilities of a Trust Administrator

A Qualified Personal Residence Trust (QPRT) is a wonderful tool for persons with large estates to transfer a principal residence or vacation home at the deepest possible gift tax value. The general rule is that if someone constitutes a gift of property by which they retains some benefit, the house remains to be valued (for gift tax purposes) at its full fair monatary amount. In other words, there is no decrease in value to the donor?s retained benefit.


The duties of your trustee could be imposed by the law, or with the instrument or deed that sets up the trust. The trustee needs to consider the care an ordinary prudent person would exercise in making an investment with respect to someone else. The trustee must also act from the scope in the powers directed at the trustee by the trust instrument. To show that the trustee is carrying out these duties properly, it is vital to find out some trust accounting basics that will aid the trustee to adequately record the income and expenses from the trust.

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