Funding Trusts with Stocks, Promissory Notes, and Limited Partnership Interests
What Is a Living Trust?
How to Select a Personal Financial Advisor

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 Create a Payment Schedule for a Trust
How to Fund a Trust after a Grantor’s Death
How to Transfer Cash and Securities into a Trust
How to Appraise a Decedent’s Real Estate Holdings
What You Should Do Immediately after Your Appointment as Executor of an Estate