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Inventory and Appraisal
Before the trustee may distribute
trust property, an inventory and appraisal of all trust property should be
conducted. This will allow the state and federal governments to determine
the taxes owed on the property, and it will provide the trustee with a clear
picture of the trust property she must administer. The trustee may be able
to conduct the inventory and appraisal herself or a government appraiser may be
appointed. It is important that an accurate and complete inventory and
appraisal be conducted to ensure that no tax complications arise later which
could subject the trust to substantial penalties.
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Set Up Trust
Checking Account and Record-Keeping System
The trustee must provide
accountings to beneficiaries and ensure that
trust property is not lost or stolen.
Therefore, the trustee must keep track of
the income and principal entering or leaving
the trust. This will require the trustee to
create a record-keeping system to monitor
these transactions. A tax adviser or
attorney may help the trustee develop such a
system.
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| Additionally, a trust checking account
should be created to facilitate payments of
income to beneficiaries and for trust
expenses. Expenses tend to crop up quickly
and often need to be addressed immediately.
Having a trust checking account streamlines
the trust administration in many ways. |
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