Estate Tax Installments and Postponements: Part 3 of Form 706
How to Obtain a Liability Release for Estate Form 706
How to Pay the Tax for Estate Form 706

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
What Happens after Estate Form 706 Is Complete?
How to Take Small Estate Shortcuts for a Probate Estate
Will and Trust Items to Keep Track Of
What to Do When Someone Dies
How Death Changes the Decedent’s Assets