Understanding Trust Accounting (Currently Unavailable)

Author: Jacqueline A Patterson

Understanding Trust Accounting , discusses critical issues and key considerations in fiduciary trust accounting. It focuses on recent changes in the law for trust accounting and the clarification and coordination of state statutes and federal income tax law.

Publication Date: February 2016

Designed For
Accountants, CPAs, attorneys, trust officers, trust and estate administrators, financial and estate planners and other professionals who advise clients on estate and trust planning and administration and wealth management matters will benefit from this practice-oriented seminar.

Topics Covered

• Introduction to fiduciary accounting and its impact on fiduciary income tax
• The concept of fiduciary duty and the trustee's duty to account to the beneficiaries
• The authority that provides accounting guidance, standards and protections to fiduciaries
• Tools necessary to set up a fiduciary accounting system
• Allocating receipts and disbursements between income and principal
• The interaction between fiduciary accounting income (FAI), trust taxable income (TTI), and distributable net income (DNI)
• Special accounting provisions and elections that create opportunities in today's tax environment

Learning Objectives

• Determine the underlying authority in the governing instrument or state law
• Understand how to allocate receipts and disbursements between income and principal
• Distinguish fiduciary accounting from GAAP accounting or tax accounting
• Identify the adjustments necessary to calculate fiduciary accounting income (FAI), trust taxable income (TTI), and distributable net income (DNI)
• Understand the special rules regarding distributions from entities and the "power to adjust"

Level
Intermediate

Instructional Method
Self-Study

NASBA Field of Study
Accounting (2 hours)

Program Prerequisites
Basic understanding of fiduciary accounting

Advance Preparation
None