Donna L. Stern, C.P.A.

If you have recently been named a trustee in Orange County, California, you may be feeling the weight of that responsibility. Managing someone else’s assets is serious business, and one of the most important obligations that comes with the role is trust accounting. It is a legal requirement in California. This guide breaks down what trust accounting actually involves, why it matters, what California law requires, and how working with an experienced CPA in Orange County can protect you from costly mistakes. If you are a trustee, it’s important to get legal representation to help administer the trust properly. They will also assist in your duty to account as a trustee. What Is Trust Accounting? Trust accounting is the process of tracking, recording, and reporting all financial activity within a trust. It is essentially the bookkeeping and financial reporting function of trust administration. When a trustee manages a trust, they are acting as a fiduciary, meaning they ha...

If you have spent years building a career at a company that offered employer stock in your 401(k) or other qualified retirement plan, you may be sitting on a significant amount of appreciation in that stock without realizing the tax opportunity it represents. The Net Unrealized Appreciation strategy, commonly referred to as NUA, is one of the most underused tax planning tools available to people approaching retirement, and for the right person, it can mean tens of thousands of dollars in tax savings. This post explains what NUA is, how it works, who it benefits most, and why working with a knowledgeable CPA in Orange County is essential before making any decisions. What Is Net Unrealized Appreciation? Net Unrealized Appreciation refers to the difference between the original cost basis of employer stock held inside a qualified retirement plan and its current fair market value at the time of distribution. Here is a simple example. Suppose your employer contributed shares...