Understanding the Basics of Fiduciary Accounting

Author: Klaralee R. Charlton

CPE Credit:  2 hours for CPAs

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: May 2019

Designed For
Attorneys, CPAs, and Enrolled Agents.

Topics Covered

  • What is Fiduciary Accounting?
  • Accounting vs. Fiduciary Accounting
  • Fiduciary Accounting Format
  • Fiduciary Accounting and Tax Accounting
  • Fiduciary Accounting — More Than Just Numbers!
  • Four Steps to Adviser's Responsibilities
  • Additional Fiduciary Accounting 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
  • 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
  • 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

Registration Options
Quantity
Fees
Regular Fee $55

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