During the course of a trust administration, you may be called upon to serve as trustee. Trustees have many responsibilities. One primary job duty of a trustee is to prepare regular accountings that detail the income and expenses of the trust. To go along with these accountings, trustees also have the important obligation to keep accurate trust records and receipts as they work through the trust administration process.
3 Tips for Keeping Accurate Trust Records
What can you do to comply with the requirement of keeping accurate trust records during an administration? The following are three helpful tips:
- Contact an experienced attorney for guidance. It is crucial that you keep complete and accurate trust records during the trust administration process in order to avoid any accusations that you may have breached your fiduciary duties. Working with an attorney can help reduce the likelihood of this type of dispute.
- Set up a bookkeeping system. Using a system can help you track all receipts, disbursements, and transactions. Some trustees choose to outsource this task by hiring a bookkeeper. Another option is to seek assistance from either your attorney or your CPA if he or she is assisting with the trust administration.
- Set up a filing system. It is not enough to simply keep book entries about the expenses and income relating to the trust administration. You also must keep copies of vouchers, receipts, and other documents that evidence disbursements, expenses, and capital transactions. These documents can be used later to substantiate the claims made in your accounting if a beneficiary or other party raises questions.
Unfortunately, failing to fulfill your duties with regard to a trust accounting can start you down the road to costly trust litigation. It is important to keep accurate records and books in order to prevent these disputes from occurring. We are here to help you through this process. We encourage you to contact us today for more information at (888) 443-6590.
- Probate Inventories and Accountings
- Documenting Estate Expenses
- Beneficiaries Objecting to Trust Accountings
AttorneyThe Grossman Law Firm, APC · 525 B Street, Suite 1500, San Diego, CA 92101 · (951) 523-8307