Inevitably, all property accumulated during one's lifetime must be transferred either during life or at death. In fact, record amounts of personal wealth will transfer to the next generation in just the next 10 years alone! Estates and trusts are two of the vehicles by which people can transfer their wealth, and they are two more reasons why clients need your expertise.

Practitioners now have an increasing opportunity to provide services relating to estates and trusts. While some practitioners will actually serve in the role of fiduciary, most will be involved with providing accounting and tax services. This Guide covers the accounting, reporting, and fiduciary considerations accountants need to know in order to be prepared to offer estate and trust services.

It includes:

• Helpful discussion on what is an estate or trust and how it is created and terminated.
• Critical guidance to easily determine which authority applies--governing documents, statutes, courts, etc.--when accounting for estates and trusts.
• Step-by-step guidance on the financial information that should be presented to make a fiduciary accounting to the courts or other interested parties.
• Practical examples of how to account for the activity occurring in an estate or trust and how to determine the appropriate basis of accounting.
• Analysis of the Uniform Principal and Income Acts and their relevance to the will, trust agreement, and fiduciary accounting.
• Extensive discussions on when a report is required, reporting options, and the issues relating to serving as a fiduciary.

Some of the important new features are:

• Fiduciary Accounting. What constitutes fiduciary accounting income and governs proper allocation of principal and income is generally defined in state laws derived from the Uniform Principal and Income Act (UPIA). Most states have now adopted the 1997 UPIA. Our discussion includes the latest developments related to the UPIA and principal and income allocations.
• AICPA Engagement Reporting and Performance Update. We have revised the text to provide you with critical information and the most up-to-date guidance on estate and trust reporting and engagement performance issues.
• SSARS Exposure Draft. We have also included a discussion of a SSARS Exposure Draft covering three proposed SSARS: Framework and Objectives for Performing and Reporting on Compilation and Review Engagements, Compilation of Financial Statements, and Review of Financial Statements. The new SSARS are expected to be issued in the fourth quarter of 2009 and would be effective for compilations and reviews of financial statements for periods ending on or after December 15, 2010, with early implementation permitted.
• Accounting Update. There are no specific accounting standards directly addressing fiduciary accounting. However, generally accepted accounting principles do provide an authoritative basis upon which to make reporting and disclosure decisions when providing an accounting to the court, beneficiaries, and others. We have updated the discussion of FASB accounting developments that may impact fiduciaries and accountants when preparing an accounting for an interested party in a traditional format, including new guidance related to subsequent events, uncertain tax positions, fair value measurements, and the FASB Accounting Standards Codification. In addition, we also discuss the status of selected ongoing FASB projects including leases, revenue recognition, loss contingencies, and disclosure framework.
• Practice Aids. Includes updatedpractice aids and forms that will allow you to effectively implement new professional standards and administer your engagement.