Many individuals administer their own living trusts until the time of their death. At that point, a new trustee must take over and administer it on behalf of a new beneficiary or beneficiaries. Trust administration involves many different duties including notifying the new beneficiaries, appraising the current value of the trust, and keeping records of any transactions made involving the trust assets. The trustee must also handle any claims against the trust by creditors. Ongoing responsibilities may include investing the trust funds, distributing income from the trust to the beneficiaries, and paying any taxes required by law.

Trust administration is a serious legal responsibility. A trustee has a fiduciary responsibility to the beneficiary of the trust. This means the trustee must act to the best of his/her ability to make decisions that are in the best interest of the beneficiary (and in accordance with the rules outlined in the trust instructions). Failure to do so can result in litigation by the beneficiary against the trustee. This is one reason a trustee must be carefully selected. A bank or other financial institution is often chosen to act as trustee. However, the fees assessed for these services can be high. Because of this, a trustee may simply choose to pay for legal assistance on an as needed basis and charge these consultations to the trust.