How to Make Discretionary Distributions of Trust Funds
Who Can Petition for Estate Administration when No Will Exists?
Calculate Decedent, Estate, or Trust Business Income and Capital Gains and Losses

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 File for Tax-Exempt Status for Your Foundation
What Are Estate and Trust Gift and Generation-Skipping Taxes?
People Who Can Help with Your Estate Plan
How to Handle Organ Donation and Autopsy Decisions when Someone Dies
How to List a Decedent's Large Assets