As people age, it’s important to consider your best options to live the rest of your life comfortably and take care of those you leave behind. One way that you can do this is by setting up a trust. Are you unsure about what a trust is or what it entails? The team at Marcia Campbell, CPA has your back. Learn all you need to know about trusts and trust accounting below.

What is a Trust?

A trust is a private, legal document in which a trustor (the person creating the trust) gives a trustee (an appointed person) the responsibility to manage assets for the document’s listed beneficiaries. There are two basic types of trusts:

• Living Trust – A document created while you are still alive that determines what happens to your assets when you pass. This trust can become irrevocable when the trustor dies.
• Testamentary Trust – A document created through a will and directs the executor of the estate to create it once you’ve passed.

Related Article: Testamentary Trust VS Living Trust | What’s The Difference?

What Assets Do I Include?

If moving forward with a living trust, you can begin putting together a list of assets you would like to distribute to beneficiaries. Below are a few ideas you might consider:

• Liquid accounts – bank accounts
• Traditional investments – stocks and bonds
• Real estate – physical properties

View our blog for a long list of assets you should include in your living trust.

What is Trust Accounting and Why Do I Need It?

Trust accounting is a detailed report of the assets and expenses of a trust. If you are a trustee in the state of California, you are legally required to file an accounting of trust assets each year. It is imperative that trustees keep a record to not only stay up to date on behalf of beneficiaries but to also pay taxes and fees, handle distributions, and fulfill their fiduciary role.

One of the best and stress-free ways to keep an accurate accounting of your trust is to hire a CPA.

Do you have questions about trust accounting?

If you need help, please contact us by filling out our Contact Form or by giving our office a call at +1(951)686-3608.

As the most experienced CPA in the Inland Empire who specializes in working with seniors, Marcia L. Campbell is committed to helping each client thrive by caring for their personal and financial wellbeing with genuine interest, well-established expertise, and a focus on respectful partnerships. Marcia’s team specializes in a number of services including elder & financial care, court & trust accountings as well as private fiduciary and tax services. At Marcia L. Campbell, CPA, we understand the importance of our clients’ individual needs and are committed to helping them make the best personal and financial decisions for their future.