The Reserve Calculation Worksheet is a fillable PDF designed to help trustees calculate, document, and justify a prudent reserve before making interim or final trust distributions. Setting aside adequate reserves for known and potential liabilities is a core fiduciary duty and one of the most effective ways to protect a trustee from personal liability, clawbacks, and post-distribution disputes.
 
This worksheet walks trustees through a structured, three-step process. Section A addresses known liabilities such as administrative expenses, verified debts, taxes, insurance premiums, and property-related costs. Section B focuses on potential or contingent liabilities, including unresolved creditor claims, anticipated legal fees, property expenses, and possible beneficiary disputes. Section C consolidates these amounts and allows the trustee to apply a discretionary safety margin, resulting in a clearly documented total reserve to hold back. A trustee certification section memorializes the decision-making process.
 
Designed for use before each round of distributions, this worksheet helps trustees estimate conservatively, document supporting records, and maintain a defensible reserve calculation as part of the trust’s permanent files. The fillable PDF format allows trustees to complete, update, sign, and retain the worksheet electronically for accounting, beneficiary disclosure, or court review.