Blogs from February, 2023

A woman sitting at a desk doing some accounting at her laptop

Demanding accounting on a trust is crucial for beneficiaries to understand how the trust is being managed. Understanding trust accounting and the steps necessary to demand it from the trustee is essential. Here's what you need to know about demanding accounting on a trust.

What is Trust Accounting?

Trust accounting is the process of keeping track of all financial transactions related to a trust, including deposits, withdrawals, investments, distributions, and more. It ensures that all assets are accurately accounted for and that all related taxes and fees are paid. The purpose of trust accounting is to ensure that the trust funds are being used appropriately and in accordance with any terms set out in the trust agreement.

Demanding accounting on a trust can help beneficiaries get an understanding of how their money or assets are being managed by their trustee. When you demand accounting on a trust, you should receive detailed financial statements showing how much money was put into the trust, how much was taken out of it, where it went, and what kind of return was earned off investments made with those funds. This information lets you stay informed about how your money is being used and whether or not your trustee is managing it properly.

How to Demand Accounting

Demand letters must be sent in writing (email or regular mail) from each beneficiary directly to the trustee—or their attorney if they have one—requesting an account statement for all activity within the past year. The letter should include details such as when you want the report by, who should receive it (each beneficiary), and whether there will be any questions asked regarding its contents once received (if so, identify who will ask them). Depending on state law, trustees may be required by law to provide certain documents upon request; if this isn’t specified in your state’s laws, then contact an attorney familiar with trusts for further advice before sending out your letter(s).

Get Assistance from a Trust Attorney

Having a skilled attorney on your side when dealing with trust accounting and legal trust issues can be invaluable. With experience comes the assurance that your interests will be protected while ensuring that all legal guidelines are followed. Learn more about how our Florida probate and trust attorneys can help you handle your legal concerns; call us at (954) 764-7273.


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