Can You Trust Your Trust: What the Practitioner Needs to Know

Many states have significantly revised the trust laws pertaining to accounting income, and its application to tax reporting positions. These substantial changes grant the trustee certain discretionary rights in determining the amount of accounting income that is payable to an income beneficiary. In addition, the income beneficiary has significant rights as well, and can take certain action to enhance his/her annual income distributions from a trust. As a practitioner, it’s important to understand these revised changes, and how they relate to the clients you represent.

This extensive guide covers many topics, including the following:

• Revised trust accounting rules in many states and the application of rules to existing trusts
• The difference between trust accounting income and taxable income under the revised trust rules including deferred compensation payments from an IRA or pension or profit sharing plan to a trust
• Retirement payments and IRA payments to a trust (the 10% rule – applicable in most states)
• Examples of the application of the Uniform Principal and Income Act (UPAIA) accounting rules in a sample state
• Other significant UPAIA issues including phantom income, depreciation adjustments, and debt amortization adjustments
• Power of adjustment rules, including discretion of trustee to adjust income distributions, and factors that the trustee should consider in exercising or not exercising the power of adjustment

Can You Trust Your Trust is a great primer for CPAs and attorneys who are trustees or find themselves dealing with a client who is a trustee.

Note: This product is an electronic download file that will be accessible immediately after completing your purchase. Access to this file – from the My Download page – expires 90 days from purchase date.

Please note this product purchase is non-refundable. For more information about this product or service concerns, please contact the AICPA Service Center at service@aicpa.org or call 888-777-7077.