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Trust administration is the process of managing the assets held within a trust according to the specific instructions laid out in the trust agreement. After the person who created the trust (the grantor) passes away or becomes incapacitated, the appointed trustee is responsible for gathering the trust’s assets, paying its debts and taxes, investing and managing the property prudently, and distributing the assets or income to the named beneficiaries as directed by the trust’s terms.

A trustee is a fiduciary and is held to a very high legal standard. Their primary duties include the duty of loyalty, which requires them to act solely in the best interests of the beneficiaries, and the duty of prudence, which obligates them to manage the trust’s assets as a cautious, sensible person would. They also have a duty of impartiality to treat all beneficiaries fairly, a duty to follow the trust’s terms precisely, and a duty to keep beneficiaries informed through regular accountings.

Company administration, often called corporate secretarial services, is the professional function responsible for ensuring a company’s compliance with corporate law and regulation. This involves a wide range of tasks, including maintaining statutory records (like the minutes of meetings and shareholder registers), filing annual returns and other official documents with government registries, organizing board meetings, and advising directors on their legal and governance responsibilities to ensure the company operates properly.

A fiduciary duty is the highest standard of care, loyalty, and good faith recognized by law. It legally obligates a person or party (the fiduciary) to act solely in the best interest of another party (the principal or beneficiary). A fiduciary, such as a trustee or a company director, must put the beneficiary’s interests ahead of their own and is strictly forbidden from using their position to gain a personal benefit or engaging in any conflicts of interest.

While both are fiduciaries, an executor and a trustee have distinct roles and timelines. An executor is appointed in a will to handle the short-term task of settling a deceased person’s estate—this involves gathering assets, paying final debts and taxes, and distributing property as the will directs. A trustee’s role, established by a trust, is often long-term; they manage trust assets for the benefit of beneficiaries for a specified period, which could last for many years or even generations.