Does a trustee have to disclose what he is doing? One of the primary duties of a trustee is to keep full, accurate and orderly records concerning the status of the trust estate and all acts performed by him. He is charged with maintaining an accurate account of all the transactions relating to the trust property. Some states require a formal written accounting by the trustee on an annual basis. Some states do have a provision that beneficiary or “interested person” can demand that the trustee give a written accounting of the trust. The right to an accounting from trustees or other fiduciaries subject to the Trust Code says LA Probate Law. The trustee must make the written accounting within 90 days. If he does not, the court can order him to make an accounting and two personally pay the attorney’s fees and costs for not making the requested accounting.
The Written Accounting by the Trustee Must Show
All trust property that has come to the trustee’s knowledge or into the trustee’s possession and that has not been previously listed or inventoried as property of the trust; A complete account of receipts, disbursements, and other transactions regarding the trust property for the period covered by the account, including their source and nature, with receipts of principal and income shown separately; A listing of all property being administered, with an adequate description of each asset; The cash balance on hand in the name and location of the depository where the balance is kept; and All known liabilities owed by the trust. Many times, people are beneficiaries of property that is being controlled by someone else but can’t get any information about the status of the property explains LA Probate Law. If you are not getting regular updates about the financial condition of your property in the hands of a fiduciary whether that fiduciary is an executor, administrator or a trustee, you probably need to contact an attorney before the estate is squandered. An executor or administrator, like a trustee has to account for the property that comes into his possession. The accounting obligations of a trustee are discussed here. This article will discuss the accounting obligations of an executor or an administrator in a probate matter.
What is an accounting?
An accounting is a written statement detailing the financial condition of the estate. It includes: The property belonging to the estate which has come into his hands. The disposition that has been made of such property. The debts that have been paid. The debts and expenses, if any, still owing by the estate. The property of the estate, if any, still remaining in his hands states LA Probate Law. And, such other facts as may be necessary to a full and definite understanding of the exact condition of the estate. In all cases, when the fiduciary does not file an accounting, an interested party can demand an accounting. The Tex. Probate Code 149A says that an accounting can be demanded fifteen months after the executor has been appointed. If the executor or administrator does not file an accounting with 60 days after the demand, the Texas Probate Code provides that an interested party can file suit against the fiduciary to compel the accounting. If you are dealing with an executor, administrator or trustee and you are not receiving regular updates about the financial condition of the property under his control, you probably need to contact an attorney about your rights before the estate is squandered away.
Rights of Beneficiaries
Beneficiaries in an estate have certain rights. The right to be notified when the estate trustee (executor) applies to court for a Certificate of Appointment of Estate Trustee (probate). A beneficiary may make representations to the court whether or not the beneficiary has any objection to the proposed executor being appointed. An estate beneficiary is entitled to information concerning the original assets to the estate and in relation to the ongoing accounting of the estate. If the executor does not produce this information voluntarily, a beneficiary may require that the executor complete a court supervised review of the accounts. A beneficiary is entitled to receive their entitlement under the estate in a timely way. The length of time will depend on the nature and complexity of the estate. Generally, if the executor completes the administration within one year, they will not be criticized. Prior to the completion of the estate, a beneficiary is entitled to see a complete list of all of the accounting for the estate and any relevant other source documents (receipts, invoices, cancelled checks, etc.) An executor is entitled to compensation. The beneficiaries are entitled to review and approve or disapprove of the level of compensation explains LA Probate Law. If the beneficiaries do not agree with the level of compensation, a court must set it. If a beneficiary is unhappy with the job that is being done by the estate trustee, that beneficiary can apply to the court for an order to remove the trustee. A court will remove a trustee if their removal is justified. There is a valid will or trust. You are a beneficiary of the will or trust or you are an heir when there is no will. You are having trouble because a fiduciary is misusing funds, is not accounting for funds or is not paying out funds from the will, trust or estate and you want to know what your rights are.
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