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coppens1
March 14, 2022
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Accounting for Estates and Trusts

  • March 14, 2022
  • 4 replies
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I have searched here for how to set up QB for an Estates and Trusts General Ledger (not Law firm Trust Accounts).  The only relevant postings were under 'Quickbooks for fiduciary accounting'.

But they don't solve the problem, and the solutions proposed are for QB online only.  

 

To restate the problem, how do I set up an 'Estate or Trust' Chart of accounts in QB, including Principal Accounts and Income Accounts?  Both Principal and Income Accounts need sub accounts for assets, liabiltiies, income, and expense.  Both Principal and Income Accounts are in the same set of books.  

Reference:  Google  'Bloomberg.com, accounting for trusts and estates'.

 

 

    Best answer by coppens1

    Dear JamesPaul, Thank you very much. It worked. I set up the trust principal and income accounts under Other Assets and Other Liabilities, and was able to get it to work.

    Now the only problem is that I selected 'accrual basis' when I set up the trust, and I need to change that to 'cash basis'. I could not find it in 'help'. How do I do that? JC

     

    4 replies

    J
    jamespaul
    March 14, 2022

     Hello, Coppens. 

     

    I'd like to share a general idea on how you can set up your estate or trust Chart of Accounts in QuickBooks Desktop. 

     

    Generally, you can select a specific account type as you manually create an account in QuickBooks Desktop. You can use Other Asset, Other Current Liability and whatnot for your estate or trust Chart of Accounts accounting setup. 

     

    To create an account: 

     

    1. Go to Lists, then select Chart of Accounts. 
    2. Right-click on the window, then select New.
    3. Select a specific account type needed for your trust or estate accounting. 
    4. Hit Continue.
    5. Enter a name for the account.
    6. If you're creating a subaccount, you can check the Subaccount of box and attach it to a parent account. 
    7. Enter a description and set a tax mapping if needed.
    8. Hit Save & Close. 

     

    This is just a general way of creating your accounts in QuickBooks Desktop. I would still recommend reaching out to an accountant well-versed in the Desktop version.

     

    They'll guide you on how to properly set up the transactions forms to record your entries and help you track your balances. 

     

    Since you've already tried Google, you can look for a ProAdvisor near your area: https://quickbooks.intuit.com/find-an-accountant/.

     

    If you need to see those entries and how they are tracked through reports, you can check this article for a guide: Understand reports,

     

    Do you need help recording your transactions or do you have any other concerns regarding your Chart of Accounts? Please let me know and I'll share some details and guides with you. 

    C
    coppens1Author
    March 16, 2022

    Dear JamesPaul, That sounds like a good idea.  I will give it a try and get back to you.  JC

    C
    coppens1AuthorAnswer
    March 25, 2022

    Dear JamesPaul, Thank you very much. It worked. I set up the trust principal and income accounts under Other Assets and Other Liabilities, and was able to get it to work.

    Now the only problem is that I selected 'accrual basis' when I set up the trust, and I need to change that to 'cash basis'. I could not find it in 'help'. How do I do that? JC

     

    B
    Berry4Holiday
    November 15, 2023

    I am also having an issue with Quickbooks Essentials online.  I only need to use this product for tracking the expenses, etc. in the probated estates I handle.  As you say, it is not an attorney trust account, but the Executor's bookkeeping that I track for reports to the Probate court.  I had a Desktop Account that is no longer supported and am a solo practice in my waning years.  Unfortunately, I still would like to use Quickbooks for this type of account tracking.  Your comments are the first that appeared to be directed at the same problem I'm experiencing.  Surely, there is a solution.  

    I thought I would check out the desktop app for online products, not to be confused with the online desktop product which is much more than I would need.  This app that would mimic the Desktop account map that I was used to and keep me connected so that I don't have to sign in at every instance.  The directions say to go to my Settings and select "Get the desktop app".  When I open settings there is no such selection before me.

    C
    CamelleT
    November 15, 2023

    Allow me to address your two concerns, Berry4Holiday.

     

    First, you mentioned that the "Get the desktop app" selection is unavailable on your end. The main reason is that this feature is only available for QuickBooks Online (QBO)Advanced and QuickBooks Online Accountant (QBOA) version. If you want to utilize this feature, you can upgrade your plan. 

    When you plan to upgrade, here's how:

    1. Sign in to QuickBooks Online as a primary or company admin.
    2. Go to Settings ⚙ and select Subscriptions and billing.
    3. Make sure your payment info is up to date.
    4. In the QuickBooks Online section, select Upgrade your plan.
    5. Review the available plans and then select Choose plan.
    6. Follow the on-screen steps to upgrade your plan.

     

    Second, may I know what you meant by the account tracking you wanted to do in QBO? This way, I'll be able to provide appropriate steps on how you can do this.


    I'll also share an article to help prevent unwanted changes before filing your taxes: Close your books in QuickBooks Online (intuit.com).

    If you need further assistance, drop a reply below. I'll be here to assist you. Take care!

    M
    meh2024
    September 21, 2024

    I am just starting to set up an estate in QB.  I have been researching the recommended chart of accounts and related entries for typical opening of estate and transactions.  I am very curious what account set up you finally used.  One of my concerns is the auto period closing entries and how to force that into the proper equity accounts (e.g. equity principal vs equity income).  Would you be willing to share via email?  As you know, accurate and streamlined tax reporting/K1s are my goal.  Wanting to make is simple by setting up the proper chart of accounts etc.

    J
    jdyspirit
    December 17, 2024

    I am also in the same boat.  Did you ever get an answer to this problem?

    6
    61701
    May 18, 2025

    Hi C, I just ran across your comment; I'm just starting to provide accounting and 1041 to the trustees of an irrevocable trust.  I use QB desktop, not QBO. If you are willing, I would much appreciate a copy of your QB chart of accounts and any other tools you are using (Excel spreadsheets, etc.).   Thanks...  [email address removed]                                      

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