Does the Estate Need a Temporary Executor?
DIY or Not: Wills and Estate Planning
Who Should Receive Notification when the Estate Owner Dies?

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 Calculate Trust Accounting Income
What Powers Are Granted to a Trustee?
How to Arrange the Decedent's Funeral as Estate Executor
How to Complete Schedule E for Estate Form 706
How to Appraise a Decedent’s Real Estate Holdings