Make 2015 totally awesome. Take the Dummies challenge and you could win $1,000! Learn how.
Why Every Canadian Should Have a Will and Estate Plan
How to Invest an Estate to Minimize Income Taxes
Estate Planning First Steps: How Much Is Your Estate Worth?

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
Don’t Take Unsanctioned Shortcuts for an Estate or Trust
Schedule K-1 for Estates and Trusts: Alternative Minimum Tax
Estate Planning with Homestead Statutes in Mind
Who Administers Estates When Someone Dies or Needs Representation?
How to Complete Schedule M for Estate Form 706