A trust accounting is a document that lists assets, informs of any expenditures and disbursements and accounts for any income that has come into the trust since the last accounting. The trustee provides a trust accounting to the beneficiaries of the trust when significant transactions occur and/or near the end of a year.
A trust accounting must be detailed and specific so that interested parties can have a full understanding of all assets and transactions. If details are missing, inaccurate or unexpected, interested parties can file an objection to the accounting. Interested parties include beneficiaries, co-trustees or special trustees. Here are three reasons why these parties might file an objection:
- False information was included in the trust accounting
- The trust accounting indicated mismanagement of trust funds
- Trust funds appear to have been stolen
Once you decide to file an objection, you must make sure you know how to file one. If there is an ongoing court case involving the trust, you would file your objection with the court. According to the Illinois State Bar Association, you may receive a more detailed description of certain specific transactions. If there is no ongoing court case involving the trust, then you would initiate a court case by filing a petition. Filing a trust accounting objection is easier to do with the help of an experienced estate planning attorney.
