While court accountings may be done by an unskilled trustee, it is always in the best interests of beneficiaries and trustees that the court accountings are done by a professional. The reason is that a professional can complete a precise and accurate accounting of all your assets, without overlooking anything.
Why Do You Need Court Accountings?
Trustees need to assemble accurate court accountings, that includes all financial transactions made by the deceased to present to the court. The court will use this information to determine if there was any misuse of assets or if there is some kind of discrepancy. This is a key reason why it is so important to have court accountings done by an experienced professional is to make sure they are done effectively and with precision.
How Are Court Accountings Different from Normal Accountings?
Unlike traditional financial statements, court accountings require a very different and specific format that is much more comprehensive. Overall, court accountings requires a much greater level of detail that recounts financial transactions involving the assets of a trust.
A qualified CPA conducts the court accountings process depending on the specific requirements set by the court. This attention to detail is intended to prevent errors that may unintentionally show a problem with the trustee’s decisions or management of trust assets.
When Do You Need Court Accountings?
Court accountings can be done for conservatorships, estates, and trusts. They are also part of the probate process and provide an accurate assessment of assets before distribution begins for any beneficiaries. Court accountings can also help the probate process determine if an estate has any debts that must be settled or addressed.
Important information: Some situations may require trust accountings, which is very similar to court accountings. The only difference being that it is not going to be presented in the court.
Who Benefits From Court Accountings?
Trustees can benefit from court accountings since a fully detailed accounting can show that there hasn’t been any misappropriation of assets or mismanagement of funds. However, court accountings can also prove that a trustee did not properly manage an estate’s assets or even did something unlawful with the entrusted assets. While beneficiaries of a trust can waive court accountings using a written request, a court will require a full accounting if there is a reason to believe that there has been a breach of trust.
Find Out How We Can Help
Marcia L Campbell, CPA provides professional court accounting services. We have over 25 years of experience working with conservators and courts, which means we can provide you with accurate accounting for all types of trusts.
Learn more about our services here.