Estate Planning in South Carolina

Volume VI: South Carolina Fiduciary Accounting and Taxation

F. Ladson Boyle and S. Alan Medlin

Copyright 2017

Upon completion Estate Planning in South Carolina, Second Edition will be a comprehensive six-volume set authoritative to this complex, challenging, and rewarding area of practice. Each Volume was written as a stand-alone resource; therefore, each Volume will be released and sold as it becomes available. This means that Volumes will not be released sequentially.

After three and a half years of research, writing and editing, Professors Boyle and Medlin have produced a brand new Volume VI to the Estate Planning in South Carolina series. Volume VI, South Carolina Fiduciary Accounting and Taxation, consists of an introduction and six chapters. The introduction gives a general overview of fiduciary accounting and discusses the default rules. Chapter One addresses the unique fiduciary accounting issues involved with an estate and when beneficiaries of a trust change. Chapter Two discusses the rules for allocating receipts by an estate or a trust to either income or principal. Chapter Three discusses where to charge expenses-that is, whether expenses are paid from income or from principal. Chapter Four includes a discussion of the relatively new concept of the “power to adjust” and in particular when it is available to a trustee and when it is not, as well as the concepts of decanting and unitrust conversions.  Because fiduciary accounting is intertwined with the income taxation of estate and trusts, Chapter Five provides an abridged discussion of federal income taxation of estates and trusts. The final chapter is a discussion of the income tax issues when South Carolina income tax law differs from federal tax law and discusses issues that are unique to state income taxation of an estate or a trust. Volume VI also contains extensive appendices including a table of authorities and a topical word index, as well as a cross-reference index that correlates the sections of the Uniform Principal and Income Act (1997) and the South Carolina Principal and Income Act.

Summary of Contents:

Chapter 1: Categorization and Allocation of Receipts

Chapter 2: Allocation of Receipts During Administration of Trust

Chapter 3: Allocation of Disbursements During the Administration

of a Trust

Chapter 4: The Power to Adjust as the Critical Feature of Modern

Portfolio Theory

Chapter 5: Federal Income Taxation of Estates and Trusts: An Overview

Chapter 6: South Carolina Income Taxation of Estates and Trusts