Accounting

This section focuses on trustees’ duties regarding trust accounts and accounting. Trustees must keep accurate, separate records of trust activities, open to beneficiary inspection, and submit periodic account settlements, often annually or as required by the trust instrument. For court-appointed trustees or those in testamentary trusts, regular court accounting may be mandated. Trustees must report all transactions in detail, demonstrating the condition of the trust estate without commingling personal accounts. Finalized accounts, once approved, cannot be reopened except for mistakes or fraud. The cost of preparing accounts is generally covered by the trustee’s compensation, but extraordinary court costs are borne by the trust estate unless the trustee is at fault.