Who is entitled to a trust accounting as a beneficiary?
The truth is some beneficiaries are entitled to an accounting as a matter of right, while other beneficiaries may obtain an accounting at the discretion of the Court, but not as a matter of right. For starters, all beneficiaries are entitled to reasonable information from the Trustee regarding Trust business .
Can a beneficiary request a judicial accounting?
However, sometimes the beneficiary will request a formal judicial accounting, which can be more involved, costly, and subject the fiduciary to a court proceeding. Other interested parties may request an accounting: Creditors and a surety company (if there is a fiduciary bond involved) may also request an accounting.
What should be included in a trust accounting?
The proper Trust accounting format will allow each beneficiary to see the total starting assets, all income and gains received by the Trust, all expenses paid, all distributions made to Trust beneficiaries, and a listing of the ending assets on hand. In other word, a full and complete overview of the Trust administration.
Can a trustee be ordered to account to a remainder beneficiary?
However, the Probate Court still has the discretion to order the Trustee to account to remainder beneficiaries. And the court can also require a Trustee to account once the remainder beneficiaries become current beneficiaries.
The truth is some beneficiaries are entitled to an accounting as a matter of right, while other beneficiaries may obtain an accounting at the discretion of the Court, but not as a matter of right. For starters, all beneficiaries are entitled to reasonable information from the Trustee regarding Trust business .
Can a beneficiary not request an accounting?
In some cases, no one has requested an accounting, and beneficiaries are willing to execute the appropriate Receipt, Release, Refunding, and Waiver Agreements. In these circumstances, it may seem that no accounting is necessary.
However, the Probate Court still has the discretion to order the Trustee to account to remainder beneficiaries. And the court can also require a Trustee to account once the remainder beneficiaries become current beneficiaries.
The proper Trust accounting format will allow each beneficiary to see the total starting assets, all income and gains received by the Trust, all expenses paid, all distributions made to Trust beneficiaries, and a listing of the ending assets on hand. In other word, a full and complete overview of the Trust administration.