Trust Accountings: When are you entitled to see what is going on?

Many times we receive calls from individuals who are beneficiaries to trusts, but have not been told what is going on with the trust.  Every beneficiary is entitled to demand a trust accounting, and pursuant to Section 113.151 of the Texas Trust Code the Trustee must provide an accounting upon demand.  In order to obtain the trust accounting the beneficiary must take action in accordance with the provisions of the Trust Code.

A demand must be made in writing that all beneficiaries be provided a written statement of account annually.  Once the demand is made the trustee has 90 days to prepare and deliver the accounting to the beneficiaries.  If the trustee fails to produce an accounting after the 90th day, any beneficiary may file a suit to compel the trustee to account with the Court.

One of the primary duties of a trustee is to keep full, accurate and orderly records concerning the status of the trust estate and all acts performed as trustee.  However, absent a demand, a trustee is not required to issue an accounting.

If you are a trust beneficiary and are concerned about your rights, contact Ford + Bergner LLP today.