A trust administration avoids probate and is required when a person with a living trust dies. A living trust is a legal document that, just like a will, contains instructions for the distribution of a deceased person's assets.

The trustee of a living trust is responsible for ensuring the assets of the trust are distributed properly and in a timely manner. In a trust administration, the trustee does not need a probate court's approval to act. He or she simply follows the directions written in the trust instrument.

The trustee typically works with an attorney and financial professionals such as a CPA and a financial planner, to conduct the following steps: thorough review of the trust document by an attorney; file the pour-over will with the court; mail legal notices to beneficiaries; file documents with county departments; gather all trust assets; federal estate tax analysis; collect death benefits; create sub-trusts and obtain tax I.D. numbers; distribute trust assets and terminate the trust.

If the deceased person whose assets are being distributed through a trust administration has minor children, it is common for him or her to leave assets to the children in a sub-trust. In this case, the trustee manages the assets of those sub-trusts until the child or young adult has reached the age the trust specifies. Generally, the assets in the sub-trust can be used for the health and welfare of the beneficiary, and upon the beneficiary reaching a specified age, the remaining assets are distributed outright to the beneficiary.