Overview
On occasions, executors settle liabilities on an estate. You will wish to record this within Troika for accounting purposes.
In the event the executor is a beneficiary too, this process is simple. However, for non-beneficiaries, recording this within Troika used to be a little more detailed. Since the Troika 2.09.016 release, we have enhanced the product further, to record all settlements easily, regardless of a contact's beneficiary status.
Setting up the Nominal Code Range
In order to be able to settle Estate Liabilities by Executors, users will need to extend their existing nominal codes to include a new range, 66300 to 66310.
Within Wealth Management, Nominal tab, and the Chart of Accounts menu option, select the chart requiring updating, and click Add.
Enter the following:
- 'Code' as '66300'
- 'Description' as 'Liability paid by Executors - 0'
- 'Type' as 'Current Liabilities', selected from the drop-down list.
Click OK to save.
Repeat to add 66301 and the rest of the range, to complete the entire new range:
Once done, click Close to exit.
Adding the new Nominal Code Range to a Nominal Code Set
In order for the new range of nominals to be present within all new estate clients, users must now include these nominals within the appropriate estate code set.
Within Wealth Management, Nominal tab, and the Code Sets menu option, select the code set these codes should be included into. Filter the Available list by selecting 'Current Liabilities' from the drop down list. Highlight 66300 and click the right arrow to move to the 'Included' side. Repeat for the remainder of the range.
Once finished, click Close to exit.
Adding the new Nominal Code Range to an existing estate
In order for the new range of nominals to be present within any existing estate clients set up, users must now add these additional nominals to the client's available codes.
Within Wealth Management, Client tab, and the Fund Nominal Codes menu option, select the Add tab. Locate 66300 from the Master Code List on the left hand side, select, and click the Add New Entry button. The code should now be included. Repeat for the remainder of the range.
Once finished, click Close to exit.
Recording Liability Settlements made by an Executor
In the event the Executor has settled a liability, create a new unpaid expense for each separate liability as follows.
Within Wealth Management, Client tab, and the Load Data menu options, select the administration period, click the Administer button, and select the Liabilities radio button.
Select 'New unpaid administration expenses' from the Transaction Type drop down list.
Enter the details of the new expense, and click Add to enter.
Once entered, you can settle the liability as follows.
Select 'Settle Liabilities' from the Transaction Type drop down list.
Select your new liability from the drop down list.
Enter the details of settlement, ensuring you tick the Executor tick box and make the correct selection of the executor from the list.
This create a new liability to the executor, which can be settled under Bank Accounts; find the Executor (prefixed by CR) in the Analysis drop down list.