Author: Oswald Holt Caldicott; Category: Accounting; Length: Pages; Year: The aim of this textbook is to provide step-by-step guide to Trust and Executorship Accounting. It contains detailed overview of Executorship Accounting: the. ACCOUNTS OF THE EXECUTOR The executor or administrator of an estate is referred to as a Fiduciary. A fiduciary is a person entrusted with another person’s .
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Being an Executor of an estate and a Trustee of a trust comes with significant responsibilities.
One such responsibility is to account to the beneficiaries of the estate or trust. Executors and Trustees are fiduciarieswhich means that they owe a duty of care to the beneficiaries of the estate or trust. Sometimes, however, there exevutorship situations when a beneficiary will request that the Executor or Trustee provide an accounting.
This may be a formal or informal accounting depending on the request. Regardless, the fiduciary has a responsibility to provide an accounting when requested.
It would be preferable to provide an informal accounting. However, sometimes the beneficiary will request a formal judicial accounting, which can be more involved, costly, and subject the fiduciary to a court proceeding. Creditors and a surety company if there is a fiduciary bond involved may also request an accounting. These requests for will very likely be a formal judicial accounting.
Does an Executor or Trustee Have to Provide an Accounting?
In certain cases, the Court can even demand an accounting from the fiduciary. If the fiduciary fails to provide an accounting to a beneficiary or an interested party, then the beneficiary or interested party can petition the Court to compel the fiduciary to provide a judicial accounting. If the fiduciary fails to provide an accounting demanded by the Court, then the fiduciary can be held in contempt of court and suffer significant legal ramifications.
In some cases, no one has requested an accounting, and beneficiaries are willing to execute the appropriate Receipt, Release, Refunding, and Waiver Agreements. In these circumstances, it may seem that no accounting is necessary.
However, in some cases it may be prudent for the fiduciary to petition the Court for a decree from the Court judicially settling the accounts of the estate or trust. This kind of judicial decree is like a stamp of approval from the Court, and could help avoid or defend accusations of wrongdoing of the fiduciary.
Accountants as executors: does it add up? | INTHEBLACK
Additionally, if a fiduciary bond has been issued, you may need to get a final decree from the Court settling the estate in order to have the bond discharged. Contact us today with questions or comments.
Einhart Russo Law Group, P. Beneficiaries may request an accounting: Other interested parties may request an accounting: The Court may demand an accounting: A fiduciary may wish to accounging an accounting even if there is none requested: