Rock your resolutions. Take the Dummies challenge and you could WIN $1,000! Get Started.
What You Should Know about the Unearned Income Medicare Contribution (UIMC) Tax to Manage an Estate
How to Pay Living Expenses While Money's Tied Up in Probate
Bypassing Probate with Beneficiary Designations

10 Common Pitfalls for Estate and Trust Administrators to Avoid

Step 10 of 10
Next Slideshow
Next Slideshow

Don't pay from the wrong pocket.

Money may always seem like money to you, but within a trust, it belongs to either principal or income. And although making a distinction between the two may seem silly when paying trust bills, you really must.

Because different people may be entitled to receive money and property from either income or principal, make payments (whether expenses or distributions) from the correct side of the account is crucial. More than on trustee has been sued because they paid all trustee fees from principal (or income), for example.

  • Add a Comment
  • Print
  • Share
blog comments powered by Disqus
What Are Estate and Trust Gift and Generation-Skipping Taxes?
Does the Estate Need a Special Administrator?
Where and How to File Estate Form 706
How to Satisfy Cash on Hand Needs for a Trust
How to Prepare to File Tax Returns for a Decedent, Estate, or Trust
Advertisement

Inside Dummies.com