Accumulation accounts for minors-trusts laws, Financial Accounting

Assignment Help:

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.


Related Discussions:- Accumulation accounts for minors-trusts laws

Assess the liquidity and solvency of the company, Students are to prepare a...

Students are to prepare and report as a financial advisor to an investor as to whether the public company selected is a suitable investment for the investor. In preparing the essay

Solutions, I see a question posted. I can I be sure the problem has been s...

I see a question posted. I can I be sure the problem has been solved. I tried calling your number but I got no answer

Adjusting entries, Adjusting Entries Clapton Guitar Company entered into th...

Adjusting Entries Clapton Guitar Company entered into the following transactions during 2013. [The transactions were properly recorded in permanent (balance sheet) accounts unless

Calculate the claim under insurance policy, Calculate the claim under insur...

Calculate the claim under insurance policy: 1) What do policy limits of 200/300/100 on an automobile insurance policy mean?Your automobile insurance policy contains policy lim

Calculate the profit maximization, Complete the table and use the informati...

Complete the table and use the information to determine profit maximization or loss minimization. 1. Complete the table Normal 0 false false false EN-I

Partnership amalgamation, how to prepare the accounts when goodwill is not ...

how to prepare the accounts when goodwill is not to be maintained in the books

Internal revenue service (irs), Explain:- Q.1 Explain the ways in which...

Explain:- Q.1 Explain the ways in which the needs of internal and external users of accounting information are the same and different. Q.2 Why is it important for financial sta

#Fair Value is like throwing gasoline on a fire, Ask question #what are the...

Ask question #what are the additional budens to the investor reuling from the mixed attribute model?

Amortization of patents, Nieland Industries had one patent recorded on its ...

Nieland Industries had one patent recorded on its books as of January 1, 2014. This patent had a book value of $288,000 and a remaining useful life of 8 years. During 2014, Nieland

Adjustments, Is goodwill a fictitious asset?

Is goodwill a fictitious asset?

Write Your Message!

Captcha
Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd