Trust Distribution

[Christopher Singley]

On Thu, Oct 14, 2010 at 8:34 AM, Thomas Bullock <tbullock at nd.edu> wrote:

> If the trust is a legal entity, and the document specifies a legal obligation, then yes, you would set up liability accounts in order for the books to reflect the reality of the situation.

Sounds like the former condition is true, and the latter condition is false.

> If there is no document spelling out a legal obligation, there still may be a moral one based in the integrity of a person's character and a commitment made.

Probably these concerns are less prominent in the mind of the user of
these financial statements than, say, easy & accurate tax reporting.