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Trust Distribution

hagcrewhagcrew Member Posts: 1

Hi - I need help with categorization. My siblings and I have a trust for the farm property we inherited from our mother. Would I list distribution payments as "owner equity" payments or in some other way?

in Accounting Technical Support

Comments

  • JamieDJamieD Administrator Posts: 1,156 admin

    Hey @hagcrew. I'm not an accountant or anything, but it would make most sense (from my understanding) that you categorize these payments as Owner's Equity. I would love for one of our frequent forum helpers to chime in (aka @Mikeg) though, just to make sure that I'm not giving you misinformation.

  • MikegMikeg Member Posts: 995 ✭✭✭

    @hagcrew,
    I would set up a distribution account for each sibling under the equity section in the chart of accounts. You would categorize the distributions there by individual.

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