After the death of the Gantor(s) all transactions involving the trust This is the document which you will be preparing to avoid estate taxes and probate. It has possession of your property, and a system for caring for the property, both before and after your death. assets should be carefully documented. You may want to ask an accountant for advice on how to keep records. You will need good records on:
Income received;
Income paid out;
Additions to principal;
Deductions from principal;
Principal on hand; and
Changes in trust investments.
When the trust books are originally set up, the value of each asset transferred to the trust should be determined. It's much easier to obtain this information while the Grantor This is the person that puts his/her property into the trust to avoid estate taxes and probate. is alive, and his records readily available, than to try to track down the information after the Grantor's death. In addition to satisfying the Trustee's legal responsibilities, accurate books and records will make the successor Trustee's job much easier. A Trustee should not feel burdened by accounting responsibilities he/she is unable to handle, a professional accountant should be retained when required, or the Grantor might consider using the service of a bank as "custodian" of the assets, the bank will keep the accounting records for the trust.