Funeral Expenses. An executor does not necessarily take on financial responsibility for the decedentâs funeral arrangements. When he acts in his capacity as executor, he is making financial decisions for the decedentâs estate, and the decedentâs funeral arrangements become a debt of the estate.
By law, income to the trust funds must be invested, on a daily basis, in securities guaranteed as to both principal and interest by the Federal government. All securities held by the trust funds are special issues of the United States Treasury. Such securities are available only to the trust funds.
The commitment of funds is a concept that recognizes transactions on a. pre-obligation basis. The recording of commitments is an accounting practice for. control of funds purposes and does not constitute âcommitment based fundingâ for. budget and reporting purposes. The commitment of funds achieves an administrative. control and funds availability validation prior to the obligation of funds. Throughout. this Chapter, the term âcommitmentâ is used to describe the pre-obligation of funds. and includes, and replaces, the term âreservationâ. Essentially, a commitment is the. setting aside or earmarking of funds that will be used in the future for the purchase of. goods or services, or the award of grants or subsidies.