What factor should management consider before accepting a trust account?

Management should prioritize whether the department has the expertise to properly administer the trust account before accepting it. This competency is crucial as effective trust account administration requires specific knowledge in areas such as fiduciary responsibilities, legal considerations, tax implications, and investment strategies. If the team lacks the necessary skills or knowledge, it could lead to mismanagement of the trust assets, potential legal issues, and ultimately, dissatisfaction from the client.

While other considerations like existing relationships with the customer and profitability are relevant, they do not outweigh the need for proper expertise. Accepting an account beyond the team's capabilities can expose the institution to various risks that could harm both the trust and the firm's reputation. Thus, ensuring that management has the right expertise solidifies the foundation for a successful trust administration process.