HOFFMASTER, CPA PLLC
Have you set up trusts with several beneficiaries, both income and remainder. Are you aware that under the uniform principal and income act and state statutes, beneficiaries are entitled to periodic accounting documenting the use, allocation and distribution of both income and principal? In many instances, the lack of a periodic accounting does not become an issue, as no contesting occurs amongst the beneficiaries. However, as protection against such possible contesting amongst beneficiaries, accountings can be issued, which in turn place a statute of limitations on such contesting. In addition, many trusts require some sort of fiduciary accounting to calculate the distributable net income for income taxation purposes. My firm provides fiduciary accounting services to assist you with asset protection and tax planning and compliance.