Framing the Trustee with the accounting entanglements
1992.05.19 (Edward White to Anthony O'Connell, c/o E.A. Prichard, copy to Jean Nader)
"In your letter of May 6 to Jean you asked that I communicate with you with regard to the Harold O'Connell Trust.
I am trying to prepare the estate tax, and as usual in these cases, there are problems trying to understand the flow of debts and income.
I do have a few questions which are put forward simply so that the figures on the Trust's tax returns and accounting will agree with the estate's.
1. The K-1 filed by the Trust for 1991 showed income to your mother of $41,446.00. The Seventh Accounting appears to show a disbursement to her of $40,000.00 plus first half realty taxes paid by the trust for her and thus a disbursal to her of $1794.89. If these two disbursals are added the sum is $41,794.89. This leaves $348.89 which I cannot figure out. It could well be a disbursal of principal and not taxable.
2. The K-1 filed by the Trust showed a payment of $816.00 in interest to the estate. You sent a check in the amount of $1475.97 to the estate. What was the remaining $659.97? Do I have this confused with the tax debt/credit situation which ran from the Third Accounting?
3. On the Seventh Accounting "Income per 7th Account" is shown as $5181.71, but I cannot figure that one out either.
I am of the opinion that the estate owes the trust for the second half real estate taxes from September 15, 1991 through December 31, 1991 in the amount of $1052.35. This is shown on your accounting a disbursed to the heirs. Should this be paid back to the heirs or to the Trust?
I believe that the income received from the savings accounts from September 15 to the date the various banks made their next payment to the Trust (9/30 and 9/21) should be split on a per diem basis, since the Trust terminated on her death. This will be a small amount of course.
Are there any other debts which your Mother owed the Trust?
I realize that Jo Ann Barnes prepared this and if you authorize it I can ask her to help me out.
Please understand that I have no problem with the Accounting, I m just trying to match things up. In the long run, since the beneficiaries are the same, the matter is academic. Please send the bill for the appraisal whenever you receive it. Jean is filing the Fairfax form for re-assessment in her capacity as a co-owner in order to give us a better basis to get this assessment changed and to meet the county's deadline. It will state that the appraisal you have ordered will follow. I think this will be to all of your benefit in the long run.
Sincerely, Edward J. White"