To properly account for estates and non-grantor trusts an advisor must understand the statutory requirements to account, the proper classification of revenue and expenses in a chart of account and the importance of provisions in the estate planning document. Additionally the differences and similarities to fiduciary taxation must be understood.
• Determine fiduciary accounting from the entity's financial records
• Recognize whether a receipt or disbursement is income or principal
• Identify the distribution provisions in the estate plan
• Setting up a Chart of Accounts
• Reviewing the Estate Plan
• Distinguishing between "Income" and "Principal"
• Understanding the Relationship of Fiduciary Accounting to Fiduciary Taxation