ACCOUNTING DUTIES OF THE EXECUTOR AND TRUSTEE - AN OVERVIEW - PART I
Some of the duties and obligations of an Executor or Trustee in relation to accounting to beneficiaries are as follows:
- 1. To keep proper accounts of the trust or estate, which should be clear and accurate and rendered at appropriate intervals to the beneficiaries;
- 2. The accounts must be kept distinct from other accounts;
- 3. Receipts or cancelled cheques and vouchers must be preserved to support entries on both the credit and debit side of the account;
- 4. To produce to any beneficiary the accounts when reasonably requested. In the case of income or revenue beneficiaries, accounts must be rendered at reasonable intervals without being requested by the beneficiaries entitled to such income or revenue. In the case of residuary beneficiaries, accounts should be presented when the interest falls into possession. These beneficiaries are entitled to inspect and investigate the accounts, vouchers and other documents of the trust or estate, including the will or trust deed. They are also entitled to such full and accurate information regarding the state of the trust property and the administration generally as is or ought to be within the knowledge of the Trustee. Thus, the accounts must be kept in such a manner that they will clearly show how all the monies or assets received have been disbursed or otherwise disposed of, and the ultimate distribution among the beneficiaries of the available Estate.
- It goes without saying, of course, that beneficiaries who are given general or specific bequests or devises and who have received these bequests in full are not entitled to any further accounting. If, for any reason, the Trustee cannot keep the accounts herself, she is under a duty to employ a competent person to do so, and these costs will generally be chargeable out of her compensation, as it is her duty to keep the accounts.
- 5. To make all beneficiaries fully acquainted with their rights;
- 6. To disclose any and all breaches of trust;
- 7. To allow all beneficiaries sufficient time to investigate the accounts;
- 8. To ensure that all beneficiaries have competent and independent advice in their investigation of the accounts; and
- 9. To notify all beneficiaries interested of any Court audit.
Our social media leads for today's blog are, as usual, just suggestions:
Open-Source Podcast Players: amarok
Search Engines and Directories for Podcasts:
podcast 411 (reflects numerous directories)
vodstock (listing video podcasts and "vlog" directories as of Nov.10, 2005)
podcast.net ; podscope ; podcast search ; podcast alley ; digital podcast
All the best, Suzana and Ian. --------
