Fiduciaries need to properly account for an estate or trust, which can be a complex undertaking. It is governed by the rules of the applicable will or trust agreement, as well as the guidelines stated in the Uniform Principal and Income Act. In Fiduciary Accounting, we discuss the nature of income and principal, as well as the many rules for allocating receipts and disbursements to them. The course also addresses the rules governing transfers between income and principal, the total return concept, the handling of administration charges, fiduciary accounting schedules, and much more.
Learning Objectives
Upon successful completion of this course, participants will be able to:
Recognize the different types of trusts.
Describe the different schedules that may be included in a fiduciary accounting.
Cite the rule involving possible substitutes for a fiduciary accounting.
Specify the calculation for net income in an estate or trust.
Describe the situations in which the carrying value of an asset can be reset.
Recognize the differing allocation treatments for periodic and non-periodic receipts.
Specify the situations in which one may validly make a transfer between income and principal.
Recognize which expenses are specifically chargeable to income and to principal.
Major Topics
Fiduciary Accounting
Initial and Subsequent Transactions
Carrying Value
Asset Topics
Undistributed Income
Allocation Topics
Administration Charges
Cash Accounts
The Total Return Concept
The Fiduciary's Power to Adjust
Significant Laws
