Liquid assets are often used to pay the debts of an estate because they are easily accessible. Some examples include bank accounts, money market accounts, stocks, and bonds. Tangible assets are also used to pay the debts of an estate. Examples may include cars, jewelry, electronics, or musical instruments.
What is included in assets under administration?
Assets under administration (AUA) are the total assets for which a financial institution provides administrative services. Administrative services include accounting, tax reporting, trade reporting, and custody.
What kind of expenses can we pay from plan assets?
For example, the decision to terminate a plan is a settlor decision, but certain expenses incurred to accomplish the plan termination are likely to be fiduciary expenses that are payable from plan assets.
What can be done with assets under administration?
Services offered by asset administration providers include fund accounting, tax reporting, trade reporting, custody and more. Asset administration service providers include some of the world’s largest banks and financial institutions. Assets under administration may also be reported with assets under custody.
What can be paid from retirement plan assets?
Plan sponsors sometimes wonder what expenses can be paid from retirement plan assets and what expenses must be paid from business assets. (Here, we will consider the plan sponsor and plan administrator to be identical.) The Department of Labor has provided some guidance to answer this question.
Can you pay ERISA expenses from plan assets?
A Brief Review of the Legal Principles and Some Common Questions ERISA plan expenses may be paid by the plan sponsor or, if certain requirements are met, reasonable plan administrative expenses may be payable from plan assets.
