K-1 setups

1991 K-1 setup is simple

1992.05.19   (Edward White to Anthony O'Connell, c/o E.A. Prichard, copy to Jean Nader)
"In your letter of May 6 to Jean you asked that I communicate with you with regard to the Harold O'Connell Trust.
I am trying to prepare the estate tax, and as usual in these cases, there are problems trying to understand the flow of debts and income.
I do have a few questions which are put forward simply so that the figures on the Trust's tax returns and accounting will agree with the estate's.
1. The K-1 filed by the Trust for 1991 showed income to your mother of $41,446.00. The Seventh Accounting appears to show a disbursement to her of $40,000.00 plus first half realty taxes paid by the trust for her and thus a disbursal to her of $1794.89. If these two disbursals are added the sum is $41,794.89. This leaves $348.89 which I cannot figure out. It could well be a disbursal of principal and not taxable.
2. The K-1 filed by the Trust showed a payment of $816.00 in interest to the estate. You sent a check in the amount of $1475.97 to the estate. What was the remaining $659.97? Do I have this confused with the tax debt/credit situation which ran from the Third Accounting?
3. On the Seventh Accounting "Income per 7th Account" is shown as $5181.71, but I cannot figure that one out either.
I am of the opinion that the estate owes the trust for the second half real estate taxes from September 15, 1991 through December 31, 1991 in the amount of $1052.35. This is shown on your accounting a disbursed to the heirs. Should this be paid back to the heirs or to the Trust?
I believe that the income received from the savings accounts from September 15 to the date the various banks made their next payment to the Trust (9/30 and 9/21) should be split on a per diem basis, since the Trust terminated on her death. This will be a small amount of course.
Are there any other debts which your Mother owed the Trust?
I realize that Jo Ann Barnes prepared this and if you authorize it I can ask her to help me out.
Please understand that I have no problem with the Accounting, I m just trying to match things up. In the long run, since the beneficiaries are the same, the matter is academic. Please send the bill for the appraisal whenever you receive it. Jean is filing the Fairfax form for re-assessment in her capacity as a co-owner in order to give us a better basis to get this assessment changed and to meet the county's deadline. It will state that the appraisal you have ordered will follow. I think this will be to all of your benefit in the long run.
Sincerely, Edward J. White"

Purple pattern

1993.02.10 (Virginia Bar to Anthony OConnell)
"Dear Mr. O'Connell:
This letter is in reference to your complaint against the above-referenced attorney received in our office on December 7, 1992. In addition, I acknowledge receipt of your supplemental correspondence dated January 26, 1993, received in my office on January 29. I have concluded my preliminary investigation of your original complaint and wish to advise you that your complaint presents no basis for further investigation by this office for the reasons I shall set out below.
The Respondent did not file a written answer to your complaint. However, Mr. White is represented by counsel in this matter, David R. Rosenfeld, Esquire, and I met with Mr. Rosenfeld and his associate in Alexandria to go over all of the factual matters related to this complaint.
Your complaint alleges that the Respondent served as co-executor of your father's estate along with your mother and that the Respondent allegedly withheld certain information concerning a trust which was set up under your father's will in which you were named as a trustee.
According to your complaint, you retained the Respondent in 1987 to handle a real estate closing and you allege that the Respondent appointed himself co-trustee on the note securing that transaction. Then, the day prior to closing, Respondent allegedly informed you that he was not representing your interests   in this real estate transaction. You have also claimed that the Respondent has handled your mother's estate incompetently.
With respect to your first complaint, it appears that your mother, rather than you, retained the Respondent for legal assistance in her capacity as executrix of your father's will. Apparently, your mother removed you from her will as a co-executor and nominated the Respondent in your place. However, none of these matters fall within the scope of the Code of Professional Responsibility particularly in view of the fact that you and the Respondent did not share an attorney-client relationship. 
Your father's will poured over into a trust which you were nominated trustee. By your own complaint, you admit that you hired another attorney ^x to look into the funding of the trust, i.e., what distributions the estate would make to the trust. It is my understanding that you came to Virginia to qualify as a trustee. Again, in respect to that matter, there is no attorney client relationship between you and the Respondent, Mr. White.
In the absence of an attorney-client relationship between you and Mr. White, Mr. White was under no ethical obligation to follow any of your directions or instructions nor was he obligated to communicate directly with you. His ethical duties regarding competence, promptness and communication were owed to your mother.
It is my understanding, based upon a reading of your complaint, that the Respondent and your attorney reached an agreement regarding the funding of the trust and the Respondent agreed to cooperate by providing your attorney with a draft of the final accounting of your father's estate.
Your complaint initially provoked a thought on my part as to why the father's estate remained open so long. However, as indicated in your complaint, Mr. White was not retained by your mother until 1985. Thus, while your complaint states that you were not aware of the fact that your father had appointed you as a co-trustee until 1985, and that your father passed away in 1975, the Respondent appears to have notified you of that fact after he had become involved in 1985.
You have also complained that your mother executed a codicil to her will removing you as a co-trustee and naming Mr. White in your stead. I find nothing improper about that particular matter as it was certainly your mother's prerogative to amend or modify her will and it was Mr. White's responsibility to follow her instructions in that regard.
Your second complaint involves an allegation that Mr. White undertook to represent your interests in a real estate in closing in 1987. By letter dated December 28, 1987, you purportedly asked the Respondent to represent your interests in a transfer of property to the Lynch Properties Limited Partnership. You complain that the Respondent failed to notify you of the closing date which you fortuitously discovered from the purchasers just before the closing. In addition, you point out that the Respondent and another party were named as trustees on the Deed of Trust securing the purchase loan without your knowledge or consent. When you confronted Respondent about this, he advised that he did not represent your interests in this real estate transaction. My investigation reveals that the Respondent did not serve as settlement attorney for this transaction, In fact, the closing was handled by Coldwell Banker, and the legal instruments for the transaction were prepared under the supervision of McGuire, Woods, Battle & Boothe. I have seen the real estate closing file which was delivered to Mr. Wright by the McGuire, Woods firm, and I am firmly convinced that Mr. White took no part in that transaction other than to perhaps provide informal legal advice to your mother. Your letter of December 28, 1987 is insufficient as a matter to law to establish an attorney client relationship unless there is some evidence that Mr. White did in fact undertake to handle the closing.  Finally, there is no ethical issue raised simply because Mr. White is named as a co-trustee in the Deed of Trust securing the purchase by the Lynch Properties Limited Partnership.
The third complaint involved an allegation that Mr. White allegedly withheld a $75,000 distribution until you agreed to obtain your own legal counsel With respect to this allegation, Mr. White, in his capacity as an administrator or executor of an estate is under no obligation by law to make a interim distribution to you. Whether an interim distribution is made is entirely discretionary and the law requires a distribution to be made only upon the filing of a final accounting. With regard to your allegations of incompetence and delay on the part of Mr. White in handling your mother's estate, I have determined that Mr. White has filed in a timely manner the inventory and first accounting for this estate. No delinquency notices or show cause summonses have been issued. The only possible area of neglect appears to be the late filing of Mrs. O'Connell's income tax return, however, I am advised that Mr. White paid one-half of the accrued interest to the IRS, and that no penalties were assessed. In addition, Mr. White timely requested an extension for filing the decedent's last income tax return and therefore no penalties were involved. As justification for the delay, Mr. White points out that he experienced some delay in obtaining the K-1 from you and your own complaint appears to concede that there was a problem with getting the K-1 to Mr. White.
Based on the foregoing, I see no basis in fact or in law to conclude that Mr. White has engaged in any misconduct in violation of the Code of Professional Responsibility. Therefore, please be advised that no further action will be taken on your complaint. By copy of this letter to Respondent's counsel, Mr. Rosenfeld, I am advising him of my determination."

Comments:
1) The text highlighted in purple shows the fraudsters divide the targeted family to avoid accountability. I am writing the bar to stop the dividing. The bar makes it appear that our family is already divided and it's our family's fault.
2) The CPA Joanne Barnes did the accounting for the Trust, the Estate, and for our Mother's individual tax return. A late K-1 would mean Ms Barnes was late giving it to herself.
3) Should the public trust the Virginia Bar?

2017 K-1 setup is complex. It's not resolvable.