What You Should Know about the Unearned Income Medicare Contribution (UIMC) Tax to Manage an Estate
Where to Pay State Income Taxes on an Estate
How to Arrange the Decedent's Funeral as Estate Executor

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

Recommends

Promoted Stories From Around The Web

COMMENTS »
blog comments powered by Disqus
How to Complete Schedule D for Estate Form 706
People Who Can Help with Your Estate Plan
How to Diversify Mutual Funds for a Trust
How to Complete Lines 4–7 of Part 4: Estate Form 706
Documents Needed to Transfer Assets into a Trust