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.
DEFINITION of 'General Provisions'. A balance sheet item representing funds set aside by a company to pay for losses that are anticipated to occur in the future. The actual losses for the earmarked funds have not yet occured, but the general provisions account is counted as an asset on the balance sheet.For banks, a general provision is considered to be supplementary capital under the first Basel Accord.or example, a bank would set aside funds in the case of a set of questionable loans. General provisions are considered to be a higher risk asset, because it is assumed that the underlying funds will be in default in the future. RELATED TERMS.