Fiduciary Accounting Answer Book (2020)

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Fiduciary Accounting Answer Book (2020)

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The Fiduciary Accounting Answer Book is the most detailed reference book on the market for information on how to allocate receipts and disbursements between the income and principal beneficiaries of a trust or estate. For the first time, a single book will answer all questions about estate & trust accounting including:
- An overview of fiduciary responsibility
- How situs impacts a will or trust
- The Uniform Principal & Income Act
- How to properly allocate income taxes between income and principal
  This update includes the new Draft Uniform Fiduciary Income and Principal Act (UFIPA 2017) crafted by the Uniform Commissioners on State Laws. This is in addtiion to the existing Uniform Principal and Income Act. The text of the draft act appears in a new Appendix C and the implications of the new act are discussed thoughout the text.
  
  Discussed in detail is how numerous types of receipts and disbursements are allocated between the income and principal beneficiaries, with each section of the Act having its own chapter.
  
  The questions and answers are designed to narrow research and to assist in finding just the answer one is looking for. The subject matter and key word index will further narrow the search. A complete state appendix allows the practitioner to determine how each state has amended the Uniform Act and where he might wish to establish situs.
  
  This book is a necessity to anyone who:
- Serves as a fiduciary
- Is considering serving as a fiduciary
- Serves an important role in the administration of an estate or trust including the preparation of fiduciary accountings.
- Prepares federal income tax returns (Form 1041) for estates or trusts or
- Drafts wills and trusts
  This publication allows the drafter to determine which portions of the Principal and Income Act to override or exclude in drafting and provides the drafter with timely information by subject matter to determine what impact the Principal and Income Act has on various assets owned by the estate or trust.
  
  Included in the Answer Book are a detailed treatment of:
- Distributions from IRAs and retirement plans
- Income from oil, natural gas, minerals and natural resources
- Distributions from pass through entities (partnerships, S-corporations, LLC’s & LLP’s) and the income tax allocation issues associated with them
- Distributions from regulated investment companies (mutual funds) and
- Various types of disbursements, including federal and state income tax
  This book is a must have desktop reference for all fiduciaries, trust officers, accountants and attorneys who practice in this area to any degree. It offers all the information needed to ensure compliance with critical fiduciary accounting principles.
- Highlights of the 2020 Edition:
  
  CONTENTS
- Overview of Basic Fiduciary Concepts
- Trust Situs
- Overview of Fidcuiary Accounting
- Definitions and Fiduciary Duties -- UPIA Sections 102 and 103
- Trustee's Power to Adjust and Judicial Control -- UPIA Sections 104 and 105
- Determining Net Income and Beneficiary Distributions -- UPIA Sections 201 and 202
- Apportionment at the Beginning and End of an Income Interest -- UPIA Sections 301-303
- Receipts from Entites, Trusts and Estates -- UPIA Sections 401 and 402
- Business and Other Activities Conducted by the Trustee -- UPIA Section 403
- Rents, Interest, Insurance and Other Receipts Not Normally Apportioned -- UPIA Section 404-408
- Deferred Compensation, Annuities and Similar Payments -- UPIA Section 409
- Liquidating Assets -- UPIA Section 410
- Mineral, Water and Other Natural Resources and Timber -- UPIA Sections 411 and 412
- Underproductive Property -- UPIA Section 413
- Derivatives, Options and Asset-Backed Securities -- UPIA Sections 414 and 415
- Allocation of Disbursements During the Administration of a Trust -- UPIA Sections 501 and 502
- Transfers from Income to Principal -- UPIA Sectons 503 and 504
- Income Taxes and Adjustments Between Principal and Income for Payment of Taxes -- UPIA Sections 505 and 506
- Appendix A State Appendix -- State Income Tax and Accountiing Rules for Trusts
- Appendix B Text of the Uniform Principal and Income Act
- Carol A. Cantrell, CPA, JD is a shareholder of Briggs & Veselka Co., one of the largest public accounting firms in Houston, Texas. She is also a Certified Financial Planner. She specializes in estate, tax and financial planning for families, closely held businesses, and investment entities. Prior to her merger with Briggs & Veselka in 2000, she and her husband, W. Patrick Cantrell, operated Cantrell & Company, a boutique tax firm in Houston, specializing in tax planning and IRS representation. Carol is a frequent speaker for national and state professional organizations on income taxation of estates and trusts, partnerships, and S corporations. She is also the author of CCH's Stock Options: Estate, Tax and Financial Planning, a treatise on employee stock options.
  
  As a licensed attorney, Carol represented the Rudkin Testamentary Trust pro bono before the United States Supreme Court in Knight v. Commissioner (2008). In that decision, the Court resolved a circuit split over which administrative costs of an estate or trust are exempt from the 2-percent floor on miscellaneous itemized deductions under IRC Section 67. The court found that Section 67(e) exempts onlycosts that individuals do not "commonly" or "customarily" incur and because it saw no distinction between the investment costs incurred by the Trust and those commonly incurred by individuals, the Court found the Trust's investment advisory fees subject to the floor.
  
  It is the author's sincere desire that this book will help its readers to distinguish between the costs incurred by a fiduciary to comply with the Uniform Principal and Income Act and the Uniform Prudent Investor Act and the costs voluntarily incurred by individual investors.
- F. Gordon Spoor has practiced public accounting in St. Petersburg, Florida since 1974. He is married to Chris Spoor and they have four children ranging in age from 27 to 33 and five grandchildren. He received his Bachelor of Arts Degree from the University of South Florida and is a member of the American Institute of Certified Public Accountants, the Florida Institute of Certified Public Accountants and the Suncoast Estate Planning Council and holder of a NASD series 65 Registered Investment Advisor Representative license. He is licensed to practice as a CPA in both Florida and Georgia.
  
  He is the managing shareholder of the CPA firm of Spoor & Associates, P.A., and a shareholder in the investment advisory firm of Anderson, Riley & Spoor, P.A. He is active in the Florida Institute of Certified Public Accountants (FICPA) and served on its Board of Governors in 2002-2003, as Chairman of the FICPA State Tax Section for two years, and as a member of the Legislative Policy Committees for one year.
  
  He is currently a member of the FICPA Federal Tax Committee, Chairman of the AICPA Trust, Estate & Gift Tax Technical Resource Panel, Chairman of the AICPA Fiduciary Accounting Matters Task Force and has served on a joint committee composed of the FICPA, Florida Bar and Florida Bankers Association regarding the rewriting of Florida's Trust Administration Code and revisions to Florida's Principal & Income Act. Gordon also serves as an expert witness for the State of Florida Board of Accountancy. Additionally, he serves as a discussion leader for continuing professional education courses and has been awarded an outstanding discussion leader award in every year the award has been given since he became a discussion leader in 1992.
  
  He is also the recipient of a 2000-2001 FICPA Presidential Service Award as a result of his efforts on behalf of the FICPA in serving as the lead representative of their Florida Uniform Principal & Income Act task force. He is a frequently published author on subjects relating to estates & trusts as well as the area of general tax practice.
  
  He has published numerous articles covering these topics and others. He is co-author of the FICPA's "Fiduciary Accounting For Florida" course materials and a contributing author to "Florida Law of Trusts – Fourth Edition" (West Publishing). Much of his time is spent consulting in the area of fiduciary accounting and income tax as well as litigation support in trust matters.