Bookstore  
  Home > UncleFed's Bookstore > Holmes F. Crouch > Holmes F. Crouch

Your Trustee Duties (305)
Author: Holmes F. Crouch
Pages: 224
List Price: $19.95
  • Order from Amazon.com
  • Order from Barnes & Noble.com

  • Summary

    YOUR TRUSTEE DUTIES (T/G 305) covers the tax, legal, and administrative aspects of classifying a trust as "simple" or "complex," the requirements for managing (and distributing) trust property, accounting for its income, and the "sharing" with beneficiaries taxable, tax-exempt, and nontaxable items. Also covered:

    • Overcoming myths: The reality check
    • The "30 powers" of all trustees
    • Answering Form 1041 questionnaires
    • The "Income Distribution" deduction
    • Content & preparation of Schedules K-1
    • Termination & release from duty

    Table of Contents
    Your Trustee Duties
    Book: 305
    
    Table of Content
    
    1.  OVERCOMING THE MYTHS                        1-1
    
        The “Revocability” Myth                     1-2
        The “Exhibit A” Myth                        1-3
        The “No Probate” Myth                       1-5
        Property Titling Awkwardness                1-7
        The “Outstate” Myth                         1-8
        The “No Hassle” Myth                        1-9
        The “Pure Privacy” Myth                     1-11
        The “QTIP Trust” Myth                       1-12
        The “No Waiting Time” Myth                  1-14
    
    2.  HOW TRUSTS REALLY WORK                      2-1
    
        Like a “Bonded Warehouse”                   2-2
        Role & Qualifications of Trustor            2-5
        Limitations on Trust Property               2-6
        Preferred Types of Property                 2-8
        Trustee Qualifications                      2-9
        Trust Instrument:  General Contents         2-11
        Meaning of “Power of Appointment”           2-13
        How Trustees Are Weakened                   2-15
        Check Your Trust Law                        2-16
        Uneconomical Trusts                         2-18
    
    3.  LEGAL DUTIES OF TRUSTEE                     3-1
    
        Beware of Covetous Attorneys                3-2
        Compact Edition of Trust Law                3-3
        Digest of Prescribed Duties                 3-5
        Avoid Conflicts of Interest                 3-7
        The “Prudent Person” Standard               3-8
        Many Trustee Powers                         3-10
        Specific Statutory Powers                   3-11
        Compensation for Services                   3-13
        Breach of Trust Actions                     3-15
    
    4.  DISSECTING THE CONTRACT                     4-1
    
        Photocopy the Original                      4-2
        Prepare Table of Contents                   4-3
        Clarify Name of Trust                       4-4
        Article I:  Example Styles                  4-6
        Disregard During-Life Provisions            4-8
        The After-Death Paragraphs                  4-10
        Scope the Trust Estate                      4-12
        Any Generational Skips?                     4-14
        Enshrine Your Powers                        4-15
    
    5.  GETTING DOWN TO BUSNESS                     5-1
        
        Verify Payment of Transfer Taxes            5-2
        Apply for Trust Tax ID                      5-4
        Open Checking-Only Account                  5-5
        Collect All Monetary Assets                 5-6
        Open Investment Account                     5-8
        Plan Property Rearrangement                 5-9
        Register Beneficiaries & Preferences        5-11
        Dispose of Outstate Property                5-14
        Stabilize Your Modus Operandi               5-17
        Set Up Books of Account                     5-19
        
    6.  INTRODUCTION TO FORM 1041                   6-1
        
        Head Portion of Form 1041                   6-2
        Type of Entity Checkboxes                   6-4
        Simple vs. Complex Trusts                   6-6
        General Format, Page 1                      6-7
        Income Distribution Deduction               6-9
        Exemption Amounts Compared                  6-11
        Tax Rate Bands Compared                     6-12
        What If There’s Loss?                       6-13
        More Checkboxes & Questions                 6-14
        Any Wages Assigned?                         6-16
        Foreign Accounts & Trusts                   6-17
    
    7.  SOURCES OF TRUST INCOME                     7-1
    
        There Are 8 Sources                         7-2
        Interest & Dividend Income                  7-3
        Use Schedule B: Form 1040                   7-5
        Directly Owned Real Estate                  7-6
        Indirectly Owned Real Estate, Etc.          7-8
        Transactional Gains & Losses                7-9
        Business & Farm Income                      7-11
        Three “Heavy Hitters”                       7-13
        Nontaxable Income                           7-14
    
    8.  ADMINISTRATIVE DEDUCTIONS                   8-1
    
        Overview of Deductions                      8-2
        Interest Paid on Trust Debt                 8-3
        Deductible Taxes Limited                    8-5
        Fiduciary Fees                              8-6
        Charitable Contributions                    8-7
        Applicability of Schedule A (1041)          8-9
        Legal & Accounting Fees                     8-11
        Other Deductions Not Subject                8-12
        Determining the 2% Floor                    8-14
        Expenses Affected by 2% Floor               8-16
        Adjusted Total Income                       8-17
    
    9.  THE DISTRIBUTION DEDUCTION                  9-1
    
        Simple Trust Defined                        9-2
        Section 661: Complex Trusts                 9-4
        Character of Amounts Distributed            9-5
        Limitation on Deduction                     9-7
        DNI Computational Sequence                  9-8
        Adjusted Tax-Exempt Income                  9-10
        Capital Gains & Losses                      9-11
        The Capital Inclusion Steps                 9-12
        If DNI Zero:  Stop                          9-15
        Continuation Beyond DNI                     9-15
    
    10. THE BENEFICIARY K-1s                        10-1
    
        The Start-off Instructions                  10-2
        Section 652: Simple Trusts                  10-4
        Section 662:  Complex Trusts                10-5
        K-1 Income Assignments                      10-7
        Characterizing K-1 Income                   10-9
        Material Participation:  The Key            10-10
        Deductions & Credits Limited                10-11
        A Simple Trust Example                      10-13
        Other Simple K-1 Uses                       10-15
        Complex Trusts & Charities                  10-17
    
    11. TAX AND PAYMENTS                            11-1
    
        Taxable Income Revisited                    11-2
        Overview of Schedule G                      11-4
        Capital Gains Example                       11-6
        Alternative Minimum Tax                     11-7
        Foreign Tax Credit                          11-9
        Household Employment Tax                    11-11
        Accumulations for Charities                 11-12
        Payments with Extensions                    11-13
        Estimated Payment Vouchers                  11-15
    
    12. TERMINATING THE TRUST                       12-1
    
        Identify “The Event”                        12-2
        What Probate Law Says                       12-4
        What the IRS Says                           12-6
        Notify the Beneficiaries                    12-7
        Accounting for Liquidation Proceeds         12-9
        The “Final Year Loss” Rule                  12-11
        Excerpts from Regulations                   12-12
        The Final K-1                               12-14
        The Final 1041                              12-17
        Keep a Contingency Reserve                  12-19

    UF Bookstore Main | Home