A trust is the transfer of assets to a trustee to manage during or
after the death of the maker. The trustee must manage the property to reap the
most benefits for the named beneficiaries or heirs within the control of the
trust. Trust Accounting Services Just like a will, the trust
must be created during one’s lifetime. However, unlike a will, a trust can be
effective during the lifetime of the maker. Trust accounting involves
separating the expenses of a trust into different categories. This separation
of expenses will help determine the proper treatment for tax and accounting
purposes. If there are business expenses carried on by a trust, these expenses
must be identified and offset against income when it comes to the calculation
of overall business profits. Expenses that are related to a certain type of
income need to be recorded separately as well. For example, expenses related to
owned or rental property in a trust must be recorded separately.
No comments:
Post a Comment