As a beneficiary, you may have many questions regarding your status and responsibilities.
One question that Marcia Campbell, CPA is asked frequently is if beneficiaries are entitled to trust accounting. We share the answer in this blog.
Some Beneficiaries Have a Right to Trust Accounting
Although some beneficiaries are entitled to trust accounting as a right, others must receive a trust accounting at the discretion of a court.
According to Elder Law Answers, a Trustee has a duty to keep all beneficiaries informed regardless of whether the beneficiaries are entitled or the trustee is informed.
Any beneficiary can request information from the trust such as copies of bank and financial account statements, real estate sales agreements, escrow closing statements, copies of the trust documents and amendments, and any other documentation that would inform a beneficiary about the trust administration.
Related Article: 6 Common Questions Trustees Ask
The Remainder Beneficiaries Can Get Trust Accounting
Under Probate Code section 16062, a Trustee must account to anyone who is a current income or principal beneficiary. Some individuals are not current income or principal beneficiaries, but are instead considered remainder beneficiaries. Remainder beneficiaries are beneficiaries of a trust with benefits that will come to fruition at a later date.
Although remainder beneficiaries are not entitled to current distribution, they are still entitled to information regarding the trust. Any interests that they may have in the trust will not come into play until a later date when the death of the trustor occurs.
As you can see, remainder beneficiaries are not entitled to trust accounting as a matter of right, but based on other circumstances that may occur. One circumstance that would give them the right to trust accounting is if they are specifically written in the documentation. Otherwise, only the probate court has the discretion to order a Trustee to account for the remainder beneficiaries.
Related Article: Court-Approved Accounting- How to Get It Right Every Time
Have more questions regarding Trust Accounting?
Marcia L. Campbell, CPA is committed to helping each client plan for the personal and financial decisions that need to be made for the future. Marcia’s team has a genuine interest in your well-being and a well-established list of services to help guide you through this process.
If you need help, please contact us by filling out our Contact Form or by giving our office a call at +1(951)686-3608.