What Are the Acceptable Ways for Trustees to Provide Accountings?

Trustees play a crucial role in managing a trust’s assets, and one of their key responsibilities is providing proper accountings to beneficiaries. These accountings ensure transparency and allow beneficiaries to see how trust assets are being managed, but not all trustees fulfill this duty properly.

A Pompano Beach estate litigation lawyer is familiar with all of the acceptable ways for trustees to provide accountings, as well as what is not appropriate. They can inform you of your rights and help you take legal action, if necessary.

Official Reports and Detailed Statements

Florida law requires trustees to provide accountings in a reasonably understandable manner. The following are acceptable ways to present this information.

• Annual written reports. Trustees are typically required to provide annual accountings to beneficiaries. This is true unless the trust document specifies a different timeframe. These reports should include a summary of all assets, income, distributions, and expenses related to the trust.
• Detailed statements. The accounting should outline the balance of the trust and any income received or expenses paid. Distributions made to beneficiaries and any changes in investments or assets should also be included.
• Court-ordered accounting. In cases where disputes arise, a court may order the trustee to provide a formal accounting. This often happens when a trustee refuses to provide transparency or if beneficiaries suspect mismanagement.
• Electronic or hard copies. Accountings can be delivered as printed reports or in electronic format, as long as they are clear and accessible to beneficiaries.

Some trustees attempt to provide vague or incomplete information, which is not acceptable. For example, a trustee cannot simply tell beneficiaries how the trust is doing without providing written documentation. They must provide a complete and accurate picture of all trust transactions, not just selected portions.

Should a trustee ignore requests for an accounting or refuse to share records, they may be violating their fiduciary duty. Action can and should be taken if accountings are difficult to understand, missing key information, or contain inaccuracies.

What to Do If a Trustee Fails to Provide Proper Accounting

There are trust documents that modify the standard accounting requirements. This might occur if the trust creator wants to reduce administrative burdens or provide discretion to the trustee. Yet it’s important to understand that even if the trust document limits accountings, Florida law still requires trustees to act in good faith and provide information upon reasonable request. The requirement to provide annual accountings cannot be waived, even if the trust states accountings are not required.

Beneficiaries have the right to request formal accountings. If a trustee refuses or provides incomplete information, a written request should be sent to the trustee to formally ask for the financial figures. If the trustee does not comply, a Pompano Beach estate litigation lawyer can enforce your rights.

Did you request financial figures but have yet to receive it? Proper trust accounting is essential to ensure transparency and protect beneficiaries’ rights. If you are facing issues with a trustee’s accounting, the skilled legal team at Mark R. Manceri, P.A. can help you take appropriate action and safeguard your interests. Schedule a confidential consultation today.