California Trust Accounting: What Documents are Needed?

california trust accounting discussion

When it comes to trust accounting, trustees are the people responsible for fulfilling this duty. In the Golden State, trustees are required to have an accurate account of a trust for beneficiaries yearly and if requested. Get the basics of trust accounting in California, find out what documents you will need, and understand when you will need trust accounting.


Related Article: Can a Trustee Withdraw Money From an Irrevocable Trust?

The Basics of Trusting Accounting

Trust accounting is a record that includes information about all income and expenses of a trust. It’s important to keep track of information such as the inventory of trust property, copies of account statements, invoices, and receipts for accurate accounting. California trust accounting is an annual requirement, so it’s best to keep a detailed record of information all year long, so you have all you need on hand.


Related Article: Top Mistakes Trustees Should Avoid with Trusts

California Trust Accounting Documents

Below is a list of information needed to complete a trust accounting

  • A statement of receipts and disbursements
  • A statement of assets and liabilities
  • A statement of trustee compensation
  • A description of any agents hired (CPAs, attorneys, etc)
  • A statement to petition for a court review of the accounting
  • A statement that claims against the trustee for breach of trust (may not be made after the expiration of three years from the date).

Occasions Where Trust Accounting is Required

Additionally, there are occasions when trust accounting is required as a means of maintaining the trust, or if requested. According to California Probate Code 16062, trustees must have an accounting for each beneficiary every year. Trustees are also required to have an accounting if there is a change of trustee or at the termination of the trust. Last but not least, trustees must have an accounting if a beneficiary asks for it in writing, and it must be completed within 60 days of asking. Having the above information will assist with a smoother California trust accounting


Do you have any questions about trust accounting in California? Contact the team at Marcia Campbell, CPA.

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.

As the most experienced CPA in the Inland Empire who specializes in working with seniors, Marcia L. Campbell is committed to helping each client thrive by caring for their personal and financial wellbeing with genuine interest, well-established expertise, and a focus on respectful partnerships. Marcia’s team specializes in a number of services including elder & financial care, court & trust accountings as well as private fiduciary and tax services. At Marcia L. Campbell, CPA, we understand the importance of our clients’ individual needs and are committed to helping them make the best personal and financial decisions for their future.

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