What aspect of trust management is restricted to 1% per year?

The aspect of trust management that is restricted to 1% per year pertains to deductions for administrative costs. This guideline is significant because it helps ensure that the funds in a trust are primarily used for the intended purpose rather than being diminished by excessive administrative fees.

In the context of funeral services, this regulation promotes financial stability and integrity within trusts that are often set up to cover funeral expenses. By capping administrative costs at 1%, the regulation encourages fiduciaries to manage these trusts efficiently and cost-effectively, which ultimately benefits the beneficiaries by ensuring that a greater portion of the trust remains available to meet their needs.

Understanding this regulation is vital for funeral directors and professionals managing trusts, as it not only affects financial planning but also ensures compliance with laws pertaining to fiduciary responsibilities.