The Fiduciary Accounting Answer Book (2019) is the most detailed reference book on the market for information on how to allocate receipts and disbursements between the income and principal beneficiaries of a trust or estate. For the first time, a single book will answer all questions about estate & trust accounting including:
- An overview of fiduciary responsibility
- How situs impacts a will or trust
- The Uniform Principal & Income Act
- How to properly allocate income taxes between income and principal
This update includes the new Draft Uniform Fiduciary Income and Principal Act (UFIPA 2017) crafted by the Uniform Commissioners on State Laws. This is in addtiion to the existing Uniform Principal and Income Act. The text of the draft act appears in a new Appendix C and the implications of the new act are discussed thoughout the text.
Discussed in detail is how numerous types of receipts and disbursements are allocated between the income and principal beneficiaries, with each section of the Act having its own chapter.
The questions and answers are designed to narrow research and to assist in finding just the answer one is looking for. The subject matter and key word index will further narrow the search. A complete state appendix allows the practitioner to determine how each state has amended the Uniform Act and where he might wish to establish situs.
This book is a necessity to anyone who:
- Serves as a fiduciary
- Is considering serving as a fiduciary
- Serves an important role in the administration of an estate or trust including the preparation of fiduciary accountings.
- Prepares federal income tax returns (Form 1041) for estates or trusts or
- Drafts wills and trusts
This publication allows the drafter to determine which portions of the Principal and Income Act to override or exclude in drafting and provides the drafter with timely information by subject matter to determine what impact the Principal and Income Act has on various assets owned by the estate or trust.
Included in the Answer Book are a detailed treatment of:
- Distributions from IRAs and retirement plans
- Income from oil, natural gas, minerals and natural resources
- Distributions from pass through entities (partnerships, S-corporations, LLC's & LLP's) and the income tax allocation issues associated with them
- Distributions from regulated investment companies (mutual funds) and
- Various types of disbursements, including federal and state income tax
This book is a must have desktop reference for all fiduciaries, trust officers, accountants and attorneys who practice in this area to any degree. It offers all the information needed to ensure compliance with critical fiduciary accounting principles.
