Table of Contents
Key Takeaways
- California trustees have a duty to provide beneficiaries with regular accountings.
- A trust accounting should accurately report the trust’s income, expenses, assets, and distributions.
- If an accounting contains errors, unexplained transactions, or appears incomplete, beneficiaries may have the right to object.
- Sometimes an inaccurate accounting points to a larger problem, such as trustee misconduct or a breach of fiduciary duty.
What Is a Trustee's Accounting?
One of a trustee’s most important responsibilities is keeping beneficiaries informed about how trust assets are managed.
A trustee’s accounting summarizes the trust’s financial activity during a specific period, including:
- Income received
- Expenses paid
- Investments
- Assets on hand
- Distributions to beneficiaries
Under California law, trustees generally must provide accountings at least once each year unless an exception applies or the trust provides otherwise.
At The Grossman Law Firm, Attorney Scott Grossman regularly represents beneficiaries who question whether a trustee has properly accounted for trust assets.
When Can You Object to a Trustee's Accounting?
Receiving an accounting does not mean you have to accept it.
Beneficiaries often raise concerns when an accounting:
- Contains unexplained withdrawals
- Omits trust assets
- Includes unusual expenses
- Shows transactions that benefit the trustee personally
- Fails to comply with California accounting requirements
Sometimes an inaccurate accounting is simply the result of poor record-keeping.
Other times, the problems go deeper. If you suspect your trustee isn’t acting in your best interest, don’t wait. Explore 20 Ways Your Trustee May Be Breaching Their Fiduciary Duties to learn the most common warning signs and what you can do about them.
What Happens After You File an Objection?
If you object to a trustee’s accounting, the court may review the disputed transactions and require the trustee to explain or support the accounting.
What the Court May Do Next
Depending on the facts, the court may:
- Order the trustee to provide additional records
- Require corrections to the accounting
- Surcharge the trustee for financial losses
- Remove the trustee
- Address other breaches of fiduciary duty discovered during the case
Every situation is different, but filing objections may uncover problems that are not obvious from the accounting alone. If you have concerns about a trustee’s accounting, contact The Grossman Law Firm before the situation gets worse.
FAQ
How often must a trustee provide an accounting?
In most California trusts, the trustee must provide an accounting at least annually unless the trust or California law provides an exception.
Can I object if I think something is missing?
Yes. If an accounting appears incomplete, inaccurate, or misleading, you may have the right to file objections.
Does every accounting dispute become litigation?
No. Some disputes are resolved after the trustee provides additional information. Others require court intervention.
Related Resources
How The Grossman Law Firm Can Help
An accounting that does not add up can be the first sign that something is not right with the trust. If the trustee will not answer your questions, leaves out important details, or cannot explain what happened with trust money, it may be time to talk with a lawyer.
We help beneficiaries and heirs across California protect their rights when trust or probate problems come up.
If you have questions about a trustee’s accounting or believe something doesn’t look right, call (888) 443-6590 or complete our Get Help Now form to discuss your situation. Our Intake Specialists can evaluate your case to assess your situation at no cost to you. Qualifying cases will be scheduled for a Free Phone Consultation with Attorney Scott Grossman.
Originally Published: Aug 27, 2016