Fiduciary Accounting

Trustees and executors are often burdened with fiduciary level responsibilities suddenly and unexpectedly. Professional oversight of fund assets can help fiduciaries meet their statutory obligations and alleviate some of the liabilities associated with these responsibilities.

It is often said that fiduciary accounting is governed by the Uniform Principal and Income Act (UPIA). This can be an overly board statement, but UPIA does provide guidance on one of the most important areas of fiduciary accounting – the distribution of income between beneficiaries. The UPIA specifies detailed reporting guidelines for trusts, estates and conservatorships. These entities can have two classes of owner; income beneficiaries and principle beneficiaries. The trust document or will specifies how income is to be distributed. Trustees and executors must exercise caution that fiduciary accounting does not enrich an unintended beneficiary.

Tax laws associated with trusts have become increasingly complicated over the past 30 years. The interrelation of fiduciary taxation, estate taxation and fiduciary accounting have become more intricate.  UPIA seeks to provide guidance for fiduciary accounting.  It specified how receipts and disbursements are to be categorized and which equity interest holder’s account is to be affected.  The law ensures that the intention of the trust’s creator are carried out. At the same time, it ensure that adequate financial records are maintained to prepare tax returns and other financial reports needed to prevent fiduciaries from exposing themselves to personal liability.

Podraza CPA has the right experience and credentials to ensure fiduciaries can instill confidence in beneficiaries, prevent unnecessary tension and deflect unwarranted accusations.

We can help:

  • Interpret trust and estate documents
  • Understand and meet fiduciary obligations
  • Provide accounting support to estate administrators and prepare reports for probate court, guardians and beneficiaries
  • Assist trustees meet their fiduciary responsibility and avoid potential liability resulting from misappropriation of income and assets

Call us today for a free consultation.

Podraza CPA has the right experience and credentials to ensure fiduciaries can instill confidence in beneficiaries, prevent unnecessary tension and deflect unwarranted accusations.