Avoiding Trust Litigation—the Benefits of a Trust Accounting

When someone is selected to manage a trust and is named as trustee, they undertake a great deal of responsibility. To ensure they manage the trust correctly and avoid litigation, the trustee must complete a trust accounting. One of the benefits of this detailed record is that it builds confidence among the beneficiaries in how the trustee is managing the assets.

At Hackard Law, we understand how trust accounting affects responsibility, transparency, and the protection of beneficiaries’ rights. However, when trustees breach their fiduciary duties, we represent beneficiaries and other interested parties in high-stakes trust litigation.

What Is a Trust Accounting?

A trust accounting is a detailed record of every financial transaction within the trust. It allows interested parties to see how the trustee is managing the assets, clearly stating income, expenses, investments, and distributions. A trust accounting typically lists all assets within the trust at the start of the accounting period, then notes all income and expenses. The trustee also includes any distributions of assets to designated beneficiaries and gains or losses in assets or investments. The trust accounting then concludes with the balance of the trust. When preparing a trust accounting, it is important for the trustee to provide all the information so that the beneficiaries receive a detailed and accurate examination of the trust.

When a trustee refuses to provide this information, beneficiaries may have no choice but to seek legal action to enforce their rights.

Benefits of a Trust Accounting

There are several benefits associated with completing a trust accounting, the most important of which is avoiding trust litigation. A trust accounting ensures transparency and reduces the risk of misunderstandings with how the trustee is handling the assets, informing all beneficiaries about the administration of the trust. A trust accounting can also reduce disagreements about distributions by clearly showing the management of the assets. A trust accounting could help avoid trust litigation by keeping all interested parties informed.

Unfortunately, when trustees fail to prepare or provide accurate accountings, it often leads to legal disputes. Our attorneys step in to hold trustees accountable and ensure beneficiaries receive the information and distributions they are entitled to.

Contact Us for the Help of a Trust Litigation Attorney

Completing a trust accounting could help you avoid litigation. However, when trustees fail to provide accurate or timely accountings, disputes often arise, and beneficiaries may need legal help. If you suspect a trustee is hiding information, mismanaging assets, or breaching fiduciary duties, you may need an experienced trust litigation attorney to protect your rights.

Contact Hackard Law today to learn more about how we can help you in a contested trust matter.