There are situations when people will create trusts and then name a friend or family member to serve as trustee. Oftentimes those who are appointed to these positions are ill prepared for the responsibilities involved with administering a trust. In these situations, the trustee will want to seek out a qualified CPA who can assist them with administering the trust. The accountant should gain knowledge about the trust by reading and understanding the trust terms. Laws can vary in different states so the accountant should become familiar with the applicable state laws and accounting rules. The CPA also needs to assist the trustee with preparing the required fiduciary income tax return for the trust. This column goes over many of the specific rules and requirements that trustees and accountants need to be aware of.
See Seymour Goldberg, What CPAs Should Know About Trusts, Accounting Today, March 2, 2016.
Special thanks to Seymour Goldberg (Goldberg & Goldberg, P.C.) for bringing this article to my attention.
