{Editor’s note: Gina Lara, Senior Manager, Tax and Forensics, recently published an article in the Orange County Business Journal discussing key trust accounting items that estate planning/probate attorneys and trustees need to be aware of. Below is an excerpt.}
Trustees who are not presently seeking court approval have flexibility in the format of their trust accounting, but they still must meet certain substance requirements. Accounting in the probate code format is the best way to ensure these requirements are met and adequate disclosure has been made to all beneficiaries …
The cost of an accounting prepared in probate code format is an administrative expense of the trust. It is immaterial in comparison to the cost of defending oneself in court for failure to adequately deliver timely accountings of trust money to beneficiaries. When it comes to trust accounting, the best defense is a good offense by filing proper fiduciary accountings each year.
Please read the article, then contact Smith Dickson if you have any questions.