Accounting for Estates and Trusts

Illiquid Estates

Where an estate or trust does not have funds to pay for administration expenses, there are several options available, including getting estate loans.  However, loaning money to an estate or to a trust requires special consideration.

Paying Estate Expenses

Where an estate or trust has insufficient assets to cover the costs of administrations, sometimes the trustees or beneficiaries.  Due to complex deemed interest tax rules and the strictures of trusts or estates laws, care should be taken.

Expense reimbursements

If a fiduciary has advanced expenses on behalf of the estate, a reimbursement for the expenses needs to be made to the fiduciary.

Estate & Trust Accounting

Can I Demand an Accounting?

Are you are a listed as a beneficiary under a will or trust, but the no one has produced accountings?  You may need to request a copy of the trust or will documents to see how often accounting is required.  Use our forms to Get a Copy of the Trust or Will.  If the executor or trustee doesn't respond to your request for a copy of the document, consult with an attorney.  Also, if years have gone by with no accounting, it may be necessary to conduct a forensic accounting of the estate.  In some cases, this reconciliation leads to disputes or litigation.  In other cases, a lack of financial records spanning indefinite lengths of time can require a forensic accounting of the trust or estate.

Produce an Accounting

If you are a trustee or executor, you may  need to produce an accounting of the estate or trust for interested parties.  As this can require considerable time, the trustee or personal representative may be entitled to compensation for the work they expend for resolution of the estate.  The key for the executor is to keep meticulous records.  Try using the below forms to assist with your time tracking, expense tracking, property tracking, and accounting.

Waive Accounting

If the beneficiaries are amicable and in agreement that the estate has been properly managed, they can waive the accounting.  However, the waiver of accounting needs to be made after full disclosure, requiring a ledger showing the assets and expenses.