What Are the Reasons to Require a Court Accounting?

You never know when you will be in a position where you will need court accounting. Depending on your particular circumstance, you may be the one who is asking for court accounting, or you may be called to the court. Here are some reasons court accounting may be in the cards. What Are the Reasons to Require a Court Accounting?

Why Would I Need to Complete a Court Accounting?

1. Activity Needs to Be Reported to the Court

One of the main reasons why court accounting may be required is if you have been called to court. The trustee may be required to show the court and the beneficiaries all the activity that has taken place such as the beginning inventory as well as receipts and disbursements. By drafting a court accounting, it provides the court more insight to help them make a more informed decision.

2. Your Trustee is Withholding Information

You may also need court accounting if you haven’t received one from your trustee and you want more insight into what is going on with your account. Court accounting details all assets and describes all expenses. Obtaining court accounting is a right, and if your trustee is not willing to provide information about your accounts, then court accounting may be necessary. If a judge believes the Trustee mishandled any of the assets, the judge may surcharge the Trustee. If the Trustee cannot recover the funds, the Trustee must use the Trustee’s funds to pay the surcharge.

3. Violations Have Taken Place

Another reason why court accounting may take place is if you believe the executor, agent or trustee has committed theft, misappropriation of property, commingled assets or has abused their power. If you are merely suspicious that these acts took place, it is not legitimate enough for an accounting. It is only considered if you have the evidence to prove these violations. You first need to ask questions to find out what is going on. If you don’t get the answers you need, you can then take it to court. Otherwise, if you are not getting information or you believe the information is false, the next step would be to hire a Probate Litigation Attorney to force the fiduciary to file a court accounting. 

Even though you may think it is necessary to file court accounting given the reasons listed above, the process can be expensive. We advise that you give the situation careful consideration and speak to a professional before taking action.

Have more questions regarding court accounting?

Marcia L. Campbell, CPA specializes in court accounting. 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.

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