Fiduciary accounting is an important, but often misunderstood, part of a trustee or executor’s duties. In this course you will learn how to identify which rules should apply to the preparation of the fiduciary accounting, allocate receipts and disbursements to income and principal, and properly calculate a beneficiary’s mandatory distribution.
Publication Date: February 2023
Designed For
Attorneys, CPAs, and Enrolled Agents.
Topics Covered
- What is Fiduciary Accounting?
- Importance of Fiduciary Accounting
- Fiduciary Accounting Process
- Rules Governing the Accounting Process
- Allocating Receipts
- Allocating Disbursements
- Calculating Distributions
- Planning and Examples
Learning Objectives
- Identify the governing document or applicable law which controls the preparation of each fiduciary accounting
- Recognize how to analyze receipts and disbursements and allocate each appropriately between income and principal
- Recognize how to evaluate when the trust may exercise discretion in allocating receipts and disbursements
- Identify the importance of properly allocating receipts and disbursements between income and principal
- Recognize how to differentiate correct statements regarding fiduciary and tax accounting
- Identify and describe the four steps with respect to an adviser's responsibilities
- Recognize which type of receipt is normally apportioned
- Recognize how to differentiate what is considered principal with regard to UFIPA allocation of disbursements
- Identify a type of mandatory distribution
- Recognize which state adopted the Uniform Fiduciary Income and Principal Act
- Identify how many states have not enacted the 1997 version of the Uniform Fiduciary Income and Principal Act
- Identify examples of principal
- Describe money or other property a fiduciary receives as a current return from principal
- Recognize what is normally not apportioned, regarding apportionment of receipts
- Identify what is considered income instead of principal with respect to UFIPA allocation of disbursements
- Identify examples of a type of discretionary distribution
Level
Basic
Instructional Method
Self-Study
NASBA Field of Study
Accounting (2 hours)
Program Prerequisites
None
Advance Preparation
None
Instructor
Klaralee R. Charlton
Klaralee Charlton is a Partner at 3i Law in Denver, Colorado. She practices fiduciary tax, estate administration, and business transactional law. As part of her practice, she guides clients through the process of administering a loved one’s estate including the collection, valuation, management and transfer of assets including financial accounts, real estate, and business interests with a focus on minimizing estate and income tax liability. Klaralee also works closely with trustees of ongoing trusts to ensure compliance and prepares clients’ fiduciary income tax returns annually.
Klaralee has written and lectured on topics including estate and gift tax, fiduciary income tax reporting and U.S. regulations governing the valuation of small family businesses. She is an active member of the Colorado Bar Association, Tax Section and Adjunct Profession at the University of Denver, Graduate Tax Program.
She earned her J.D. in 2011 from the University of Utah, S.J. Quinney College of Law, her LL.M. in Tax Law from the University of Denver in 2013, and her B.A. in political science in 2009 from Bryn Mawr College. She is admitted to practice in both Colorado and Montana.