Which of the following is NOT one of the three primary things to be examined before accepting an account?

• A. Tax status of beneficiary
• B. Instrument (last will and testament; trust agreement)
• C. Assets (type, quality, location of real estate)
• D. Interested parties (settlor; income benes; remainder persons)

Answer: (A)

The main idea being tested is knowing what you must review to accept an account. When you’re evaluating an estate or trust to take on, you first check the instrument to understand the rules that govern distributions and duties. Next, you inventory the assets—what the estate or trust owns, their types, quality, and where they’re located—to know what needs to be managed and valued. Finally, you identify the interested parties—the settlor, the current income beneficiaries, and any remainder recipients—so you know who has rights, who may be entitled to notices, and who could be affected by decisions.

The tax status of a beneficiary isn’t one of these three primary items because it doesn’t determine the governing terms, the asset base, or who has an interest. Tax considerations are important and are handled with tax professionals, but they don’t change what you must verify to accept the account: the instrument, the assets, and the interested parties.