FundSvcs Community

We will be receiving the residual proceeds from a Marital Trust that will be funded by the proceeds from the sale of the house that was placed in a Residence Trust.  At the time the Settlor's spouse vacates the property and sells the house, the proceeds will be placed into the Marital Trust which will be used to support the spouse until she passes.  Any undistributed income of the Marital Trust will be distributed to us to support a scholarship.  How would we value and record the "Residence Trust" portion?

Steph

Ask your CFO to confirm how they will book this. It's possible they will follow guidelines similar to that of a life estate. However, it's nearly impossible to book a one-time assess at this time I'd be inclined to record as gifts the annual distributions, which is what CASE suggests for donations that are difficult to value.

However, if your CFO plans to book a one-time asset, I'd use that same value and record a one-time gift.

John