466. Trusts That Cannot Be Terminated by Consent

467. Formalities of Termination

Part V-Banks and Trust Companies as Trustees

By Harold C. Knapp

LVI A FINANCIAL CORPORATION AS EXECUTOR, ADMIN-

ISTRATOR OR TRUSTEE

§ 468. Introductory

469. Choosing an Executor

470. Financial Corporations as Trustees

471. Trust Companies and State Banks as Trustees

472. National Banks as Trustees

473. Decisions of the Courts

474. All State Rules Must Be Obeyed

475. How Trust Assets Are Protected

476. Rules as to Issuance of Permits to National

Banks

477. Management of Trust Funds by National

Banks

478. Rules as to the Investment of Trust Funds

479. Rules as to Court Trusts

480. Trust Funds Awaiting Investment

LVII ADVANTAGES OFFERED BY CORPORATE FIDUCIARIES

§ 481. Difficulty of Selecting a Suitable Executor

482. Why a Bank or a Trust Company Is to Be

Preferred

483. The Accessibility of a Corporate Fiduciary

484. Competency of Corporate Fiduciaries

485. The Manifold Duties of an Executor

486. Necessity of Keeping Accurate Records

487. Care Required for Manifold Details

488. The Question of Expense

489. Individual Administration of Large Estates

490. Care Required to Conserve Income

491. Corporate Fiduciaries for Long Terms

492. Corporate Fiduciaries Are Skilled in Making

Investments

493. A Case in Point

467

477

CHAPTER

LVIII COMPARISON OF INDIVIDUAL AND CORPORATE FIDU-

LIX

LX

CIARIES

§ 494. Effect of Family Dissensions

495. A Typical Case

496. Contrasted Administration by Bank or Trust

Company

497. Relation of Trustee to Beneficiaries

498. A Corporate Fiduciary Will Keep Accurate

Records

499. Caring for the Assets of an Estate

500. Cases on Care of Funds

501. How a Corporate Trustee Keeps Funds

502. How a Corporate Fiduciary Keeps Informed

as to Securities

503. The Difficulty of Securing Honest Administra-

tion

504. Cases in Point

505. Why a Corporate Fiduciary Cannot Be Dis-

honest

506. Summing Up the Qualifications of a Fidu-

ciary

CUSTODIAN, AGENT, AND DEPOSITARY

8507. Sundry Fiduciary Relations

508. Banks and Trust Companies as Custodians

509. Banks and Trust Companies as Agents

510. Banks and Trust Companies as Fiscal Agents

511. Banks and Trust Companies as Depositaries

512. Depositaries Under Escrow Agreements

513. Depositaries Under Voting Trust Agreements

514. General Duties of a Depositary

A BANK OR TRUST COMPANY AS CORPORATE TRUSTEE

FOR BONDHOLDERS

$515. Corporate Trustees

516. Individual and Corporate Trusteeship Com-

pared

517. The Purpose of a Trust Agreement

518. The Usual Forms of Trust Agreements

519. The Legal Effect of Trust Agreements

520. Investigation of the Offering

521. Examination of Property and Securities

522. Provision for Sinking Fund

523. Trustees Action in Case of Default

524. Paying the Bondholders

525. The Fees Paid the Trustee

LXI THE Transfer Agent and RegiSTRAR

§ 526. Definition of Transfer Agent

527. Who May Act as Transfer Agent

PAGE

492

507

519

532

CHAPTER

528. The Advantages of an Outside Corporation

as Transfer Agent

529. Acceptance of Agency

530. Duties of the Transfer Agent

531. Entries in the Transfer Record

532. Transfer of Stock Belonging to an Estate

533. Lists of Stockholders for Dividend Payments

534. Definition of Registrar

535. Duties of the Registrar

536. Fees

LXII ORGANIZATION OF A TRUST DEPARTMENT OF A BANK

OR TRUST COMPANY

§ 537. Divisions of a Trust Department

538. The Trust Committee

539. Duties of the Trust Officer

540. The Duties of the Assistant Trust Officer

LXIII THE RELATION OF THE LEGAL PROFESSION TO BANK

OR TRUST COMPANY ACTING IN A FIDU-

CIARY CAPACITY

§ 541. The Advice of Counsel

542. Friction Between Trust Companies and the

Legal Profession

543. Requirements for Admission to the Bar

544. Duties of a Lawyer in Preparing a Will

545. Why a Bank or Trust Company Should Not

Do Legal Work

546. What a Lawyer May Advise

547. How Far a Bank or Trust Company May Go

548. The Attorney for the Estate

Part VI-Accounting for Estate of Decedents

By Paul W. Pinkerton

LXIV PURPOSE AND THEORY OF ESTATE ACCOUNTING

$549. Purpose of Estate Accounting

550. Lack of Knowledge of Subject

551. Increasing Importance of Subject

552. The Legal Obligation to Account

553. General Principles of Estate Accounting

554. Separation of Corpus from Income Must Be

Maintained

555. All Assets Must Be Accounted For

556. Need of Full Explanations of Entries

557. Service of the Public Accountant

558. Choice of the Accountant

559. Extent of His Employment

560. Purpose of Part VI

PAGE

547

553

. 565

§ 570. All Accounts Should Be Based on Final Ac-

counting

571. Information Needed for Final Accounting

572. Separation of Corpus from Income Advisable

573. Other Accounts Needed

574. Liabilities

575. Uses of Accounts

576. General Scheme

577. Method of Closing

578. Subdivision of the Inventory Account

579. Summary

LXVIII BOOKS TO BE KEPT BY ADMINISTRATORS

585

597

§ 580. Forms Not the Most Important Thing

581. Single Entry Not Suitable

582. The Self-Posting Ledger, Journal Ledger, or

601. Payment of Tax on Decedent's Income

602. After-Discovered Assets

603. Gain or Loss on Realization

604. Payment and Collection of State Inheritance

Taxes

605. Payment of Federal Transfer Tax

606. Loss by Theft

607. Sales of Pledged Assets

608. Deferred Expenses

609. Deferred Income

610. Dividends Received

611. Loss by Bank Failure

612. Loss by Fire

613. Assets Erroneously Included in Inventory

614. Realization of Debts Receivable

615. Real Estate Passing Directly

616. Collection of a Mortgage Note

617. Operation and Sale of a Going Business

618. Accounting for Partnership Interests

LXX EXECUTORSHIP ACCOUNTING

§ 619. Executor's Accounts Similar to Those of Ad-

ministrator

620. Additional Accounting Needed by Executor

621. General Books to Be Kept by Executors

622. Payments on Legacies

623. Legatees Ledger

624. Inheritance and Transfer Taxes

625. Payments of Income

626. Real Estate Passing Directly

PAGE

631

LXXI CLOSING THE BOOKS AND PREPARING THE ACCOUNT 638

§ 627. Preparing to Close the Books

628. The Trial Balance

629. Balancing the Subsidiary Records

630. Reconciling the Bank Account

631. Preparing the Closing Entries

632. Debits on Account of Corpus

633. Credits from the Realization Account

634. Schedule A: Realization of Assets

635. Other Corpus Credits

636. The Income Summary

637. Reconciliation

638. Decree of Distribution

639. Expenses of Accounting

640. Executor's Commission

641. Interest on Legacies

642. Final Distribution as Executor

LXXII PRINCIPLES OF TRUSTEESHIP ACCOUNTING

§ 643. Preliminary Matters

652

644. Trustee's Duties Less Involved Than Execu-

tor's