Accounting Matters:
Protecting Your Rights

Probate Code §§16060-16064, 15800, 15802-15805 governs the scope of a trustee’s duties to account and report information. Specific provisions of the trust instrument also govern that scope. If you feel a trustee has failed to fully account for the trust’s income, debts, assets, and liabilities, you should contact a trust dispute lawyer as soon as possible.

The trustee’s duties vary depending on whether the trust is a revocable, irrevocable, or testamentary trust. One can make the duties more stringent or relaxed by the terms of the trust instrument so long as they don’t circumvent statutory requirements or violate public policy.

The content and presentation requirements of accounting must comply with the format set out in Probate Code §16063. According to Probate Code §16063(a), the account must contain all of the following:

1. A statement of receipts and disbursement of principal and income
2. A statement of assets and liabilities
3. Information concerning the compensation of the trustee and its agents
4. The relationship of the agents to the trustee
5. A statement that the recipient may petition for court review
6. A statement that claims against the trustee for breach of trust may not be made after 3 years from receipt of a report or account
7. A disclosure of facts giving rise to the claim

Beneficiaries may also seek and receive informal accounting and reports.

Generally, a beneficiary may request financial and other information concerning a trust from the trustee, with a few exceptions. The beneficiary has the right to file a petition for an order compelling a trustee to report information and to account under two conditions:

1. The trustee failed to submit a requested report or account within 60 days after a written request
2. The trustee did not make a report or account within 6 months preceding the written request

If the trustee fails to provide the beneficiary with an accounting as specified above, he or she may petition the court to order the trustee to do so. If the accounting is incomplete, unbalanced, suspicious, or unacceptable, you can file an objection.

Trust accounting matters refer to disputes that arise when beneficiaries or co-trustees challenge the financial reports, distributions, or accounting practices carried out by a trustee. These disputes can involve discrepancies in how trust income, debts, assets, and liabilities are reported. At The Legacy Lawyers, we help clients resolve trust accounting matters through mediation, negotiation, or litigation.

California Probate Code Sections 16060 through 16064, along with Sections 15800 and 15802 through 15805, govern a trustee’s duty to account for and report trust information. The specific terms of the trust instrument may also define the scope of these duties. The Legacy Lawyers can help you understand how these laws apply to your trust accounting matter.

Under California Probate Code Section 16063(a), a trust accounting must include a statement of receipts and disbursements of principal and income, a statement of assets and liabilities, details about trustee compensation and agent relationships, and a notice that the recipient may petition for court review. The accounting must also disclose that claims for breach of trust may not be made after three years from receipt of the report.

A beneficiary may petition the court to compel a trustee to provide an accounting if the trustee failed to submit a requested report within 60 days of a written request, or if the trustee did not provide a report within the six months preceding the written request. The Legacy Lawyers can guide you through the process of compelling a trust accounting in California.

If a trustee refuses to provide a trust accounting after a written request, you have the legal right to file a petition with the court to order the trustee to do so. If the accounting provided is incomplete, unbalanced, or suspicious, you can also file an objection. Contact The Legacy Lawyers to evaluate your options for compelling a proper trust accounting.

Beneficiaries and co-trustees both have standing to challenge or question the financial reports and accounting practices carried out by a trustee. Whether the trust is revocable, irrevocable, or testamentary, affected parties can seek legal remedies for trust accounting matters. The Legacy Lawyers represent both beneficiaries and co-trustees in these disputes.

The Legacy Lawyers take a methodical approach to every trust accounting dispute. Our attorneys meticulously examine all financial documents to identify the core discrepancy, then pursue a resolution through mediation, negotiation, or litigation. Our goal is to achieve outcomes that respect the trust’s interests and restore harmony among all parties.

Common signs of trustee accounting misconduct include unexplained discrepancies in financial reports, failure to provide timely accountings to beneficiaries, incomplete or unbalanced records, and undisclosed trustee compensation or agent relationships. If you notice any of these warning signs, The Legacy Lawyers can help you investigate the matter and protect your rights.

Yes, the trustee’s accounting duties vary depending on whether the trust is revocable, irrevocable, or testamentary. The terms of the trust instrument can also make these duties more stringent or more relaxed, as long as they do not circumvent statutory requirements or violate public policy. The Legacy Lawyers can review your trust to clarify the trustee’s specific obligations.

To get started with a trust accounting matter, schedule a consultation with The Legacy Lawyers by calling (800) 840-1998 or visiting our website. Our experienced attorneys will review your situation, examine the relevant financial documents, and advise you on the best course of action to resolve the dispute and protect your interests.