Trustee Refuses to Give Accounting

How to Request an Accounting of an Estate

First, all beneficiaries have a right to request a formal accounting of an estate. An informal accounting may be desirable as it is less costly and time-consuming, but should there be suspicions of misappropriation of funds, then formal trust accounting maybe your best option.

Trustee Refuses to Give Accounting

A trustee who refuses to give an accounting breaches their fiduciary duty and breaches probate code 16060, which states that a trustee must keep the trust’s beneficiaries reasonably informed and its administration.

trust accounting To beneficiaries

Upon written request by a trust beneficiary, the trustee must deliver an accounting within 60 days, as mandated by California Probate Code. Should the trustee not comply in a reasonable timeframe, beneficiaries are empowered to seek the probate court’s intervention to obtain the required accounting, safeguarding their interests in the trust’s management.

Does a trustee have to provide an accounting?

Related Practices: Estate & Trust Litigation, Estate Planning, Probate and Probate Litigation, Trust Administration.

Before you launch into possible litigation matters, let’s go over a few crucial facts. This way, you are on the right side of the courts.

So the first thing is to gather information about the Trust document.

You will want to review it for the following:

Does the Trustee owe a duty to account and a duty to report? Typically a Trustee is under a strict fiduciary duty to keep a complete an accurate record. In other words, they should inform and account.
Does the beneficiary, i.e., are you privy to the information? A Trustee is not required to account for a trust beneficiary if they waived their rights to an account and report. [Prob. Code § 16064(c)]
What serious breach of trust has the Trustee committed?
Is the Trustee:
Mishandling funds
Refusing to fulfill a beneficiary’s request for information about the administration of the trust.
Is the Trustee self-dealing, meaning they are benefiting themselves before anyone other beneficiaries?

Take away: The Trustee is mandated to give an accounting to Beneficiaries of the Trust.  Learn more.

Trustee accounting for beneficiaries

Trustees are typically required to provide beneficiaries with an accounting unless it’s waived. This accounting continues until the trust’s closure. If beneficiaries specifically request it, trustees are obligated to present an accounting within 60 days of that request, ensuring transparency and adherence to the trust’s terms and conditions.

Trustee Refusing to Give Accounting

It is essential to seek legal counsel if you encounter any of the following situations.

Trustee Duties:

The Trustee must act as a legal fiduciary for the trust beneficiaries, with their duties outlined by the trust instrument. They are required to keep the qualified beneficiaries reasonably informed about the trust and its administration.

Upon accepting their duties, Trustees are obligated to provide the following information:

• Within 60 days of assuming trust responsibility, Trustees must notify qualified beneficiaries of their acceptance, along with the Trustee’s full name and address.
• Within 60 days of becoming aware of the establishment of an irrevocable trust, the Trustee must inform the beneficiaries about the settlor’s identity, offer the right to request a copy of the trust document, and the right to an accounting.

In addition to fiduciary responsibilities, Trustees must also:

• Provide a complete copy of the trust document upon a qualified beneficiary’s reasonable request.
• Keep accurate and comprehensive transaction records to demonstrate their adherence to the trust.

Once you have obtained a copy of the trust document, it may be advisable to consult with legal counsel.

Furthermore, Trustees of an irrevocable trust are required by law to provide an annual accounting to each qualified beneficiary, notify them upon the trust’s termination, or inform them of any changes in trusteeship.

Trustees should establish a bookkeeping system to track all receipts, disbursements, and transactions, ensuring accountability.

Takeaway: If a Trustee fails to respond to your requests within a reasonable timeframe, they may be breaching their fiduciary duties.

What are remedies for breach of contract?

Beneficiaries must address contract breaches in court. An estate planning attorney with litigation experience will be necessary.

They will explore various options, which may include the removal of the Trustee. Possible actions include:

1. Compelling the Trustee to rectify the breach by monetary payment or property restoration.
2. Removing the Trustee.
3. Reducing or withholding the Trustee’s compensation.

If a Trustee fails to recoup the sale of specific trust assets, they may be held personally accountable for those transactions.