Accumulation accounts for minors-trusts laws, Financial Accounting

ACCUMULATION ACCOUNTS FOR MINORS
 
(a) Income accumulations:
When property is left in trust for minors, the income earned for the period will be divided equally or according to the terms of the will or trust deed. These shares of income will be credited to the accounts of the infant beneficiaries, usually called Income Accumulation Accounts.

(b) Maintenance payments:
Any amounts paid for maintenance (either by the terms of the will or trust deed or under S.33 of the Trustee Act will be debited to the respective Income Accumulations Accounts.

(c) Investment of accumulated income:
The income accumulations must be invested from time to time and the investments earmarked as being on Accumulations Account.

(d) Distribution to a beneficiary:
Before distribution to a beneficiary, the investments will be re-valued and the profits or losses divided between the beneficiaries.

Posted Date: 12/15/2012 1:05:15 AM | Location : United States







Related Discussions:- Accumulation accounts for minors-trusts laws, Assignment Help, Ask Question on Accumulation accounts for minors-trusts laws, Get Answer, Expert's Help, Accumulation accounts for minors-trusts laws Discussions

Write discussion on Accumulation accounts for minors-trusts laws
Your posts are moderated
Related Questions
Silva and Juanita Rodriquez are the owners of Year-Round Landscape, Inc., a small landscape and yard service business in southern California. The business is three years old and ha

The dividend yield as well as capital growth for 2004 must be calculated with reference to the 2003 end-of-year share price. The dividend yield is 0·56% (100 × 2·8/500·8) as well a

GROUP STRUCTURES A group structure is the relationship between the holding company and its subsidiaries.  There are normally four main types of group structures (apart from the

Circumstances under which a subsidiary company can be excluded from consolidation Consolidated financial statements shall include all subsidiaries of the parent A parent need

Legal Aspects There is no law relating to branch accounts but examination problems under this heading are frequently linked to either partnership or company account problems. Ans

Calculation of the actuarial gain/losses in year to 31 December 2010 FV of plan assets PV of plan liabilities $000

An investment has a 92% chance of making a profit of $10 million, a 1.5% chance of losing $4 million, a 3% of losing $6 million, and a 3.5% chance of losing $16 million. A)    W

Generally Accepted Accounting Principles (GAAP) are guidelines for companies to follow as tehy prepare and issue financial statements. Let's start by getting an understanding of wh

Persons Who May Petition A petition may be presented by any of the following: A Creditor : A creditor may petition if his debt exceeds Shs 1,000 and is undisputed. The ord

GOODWILL This is defined as “the difference between the value of a business as a whole and the fair value of its net separable assets”. Goodwill in practical sense is the advant