Accountings state beginning and ending balances, income, expenses, distributions, and gains or losses. Requirements arise from statute, trust terms, or court order, and formats vary from informal statements to formal court filings.
Approval bars later challenge to disclosed matters.
Alternative Names:
Fiduciary Accounting|Trustee Accounting
Why it Matters?
Approval of an accounting bars later challenge to matters adequately disclosed in it, which makes the accounting the trustee's principal protective mechanism and the beneficiary's deadline for objecting. Adequate disclosure requires more than line items, since transactions described so generally that a beneficiary could not evaluate them do not start the bar. Regular accountings therefore limit exposure to recent periods.
Frequently Confused with
Related terms
Frequently asked questions
What does approval accomplish?
What does adequate disclosure require?
