What You Should Know about Trusts Created during Lifetime and after Death
How to Collect a Decedent's Employee Benefits
How to Diversify Mutual Funds for a Trust

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


Promoted Stories From Around The Web

blog comments powered by Disqus
How to Transfer Real Estate into a Trust
How to Locate a Decedent's Hidden Assets
What Are a Trust's Principal and Income?
Bypassing Probate with Beneficiary Designations
Estate Tax Closing Letters and Real Estate Releases of Lien