Trustees have a duty to account to the beneficiary.  The probate code requires an accounting after certain events and, at least annually, subject to certain exceptions.  The Trust document itself may also set forth certain requirements and deadlines for the Trustee to account.  A Trust account does not always need to be filed with the court.  As long as the appropriate information is provide to the beneficiaries, there may be no need for further court involvement.  However, Trustees should always consider the deadlines by which the beneficiaries need to submit objections and by which they would need to enforce their objections through the court process.  Typically, a beneficiary can challenge a Trustee’s accounting up to four years after the accounting is served.  This can result in a Trustee who has completed their administration, and moved on in their life, only to be faced with a lawsuit years in the future.

To avoid future lawsuits, many Trustees ask that the beneficiaries sign a document confirming acceptance of the accounting and waiving any potential claims.  When this is not possible, some Trustees may prefer to file a Petition with the Probate Court so that the court can order the approval and settling of the account. Klinedinst’s Probate and Trust attorneys can help Trustees to ensure that the beneficiaries waive their right to challenge the accounting in the future, or to settle their account with the court, if necessary.

Trust Administration

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