Trust/Estate Problem

[dsi]

Oh My! A client just came to me for help...and I'm not sure how to approach this one. So, any guidance I can get from this board will be truly appreciated.

Client (niece of the deceased) was named as the trustee of a living trust. Deceased died back in Nov 1999. The trustee NEVER applied for a FEIN, NEVER set up a trust bank account, and somehow sold some of the real property that the deceased owned but never titled it in the name of the trust.

What triggered my client to come to me was that one of the beneficiaries retained an attorney to investigate this issue. My client now has to provide an accounting for the assets of the deceased.

Where does one begin? Should my client get an FEIN and file 1041's starting with 1999?

[DTS]

David

I had this situation last year and this is exactly what I did, obtain the EIN and filed all the returns through '06. I did send a letter with each return stating the situation and why the returns were not filed. There has not been a problem and I don't think there'll be one.

My client was not under pressure for an accounting, but she had all the information needed.

Dennis

[dsi]

When the court asks for "an accounting", isn't this nothing more than a spreadsheet of income and disburstments? That is, just taking the info from check register and placing it on a spreadsheet?

[joanmcq]

No, an accounting is a formal report. I took a class in it, and although it can be in any format for informal purposes, it it is used by the court, it must be in a specific format (at least in CA).

[dsi]

Any recommendations as to where I can find such a format?

[DTS]

Accounting format

David,

I will put a call out and see what I can get for you, as well as Joan's recommendation. I'll post it later on.

Dennis

[joanmcq]

Have you checked 'accountants world?'

[DTS]

Some info for you

David,

Just got some info for you from a client. She told me the criteria for the courts is:

*Any bonefide accounting software is fine, Quicken, QB, etc
*Print out in portrait, not landscape (important)
*Use 10 font or higher
*Use lots of detail and backup with documents, such as bank statements, etc.

I did ask her if Excel would be OK if all the formulas were in place to calculate everything and she thought it would be fine.

I can call her back, if you have any further questions. Let me know.

Dennis

[dsi]

Thanks Dennis & Joan. I googled and found a couple of items of interest. If I discover anything of importance I will post it.

[Gretel]

When the court asks for "an accounting", isn't this nothing more than a spreadsheet of income and disburstments? That is, just taking the info from check register and placing it on a spreadsheet?

Besides of the format this is basically true. You also have to look at your state laws what part of the income is considered income for the trust and what part is considered principal received.

[dsi]

I did find an excellent article on the net, however I can't attach it to this message because it is to large of a file. If anybody is interested in having a copy send me an e-mail.

[Tackslawyer]

I did find an excellent article on the net, however I can't attach it to this message because it is to large of a file. If anybody is interested in having a copy send me an e-mail.

I would obtain your state's bar's probate book. you should be able to find one in the library. the index should show sample accountings. you can also ask a trusts/estate attorney.