This form is a sample letter in Word format covering the subject matter of the title of the form.
State Bar Of California Handbook On Client Trust Accounting In Middlesex
Category:
State:
Multi-State
County:
Middlesex
Control #:
US-0001LTR
Format:
Word;
Rich Text
Instant download
Description
Form popularity
FAQ
The trustee of a California trust has a duty to keep beneficiaries reasonably informed of the trust and its administration. The trustee must also account to all current income or principal beneficiaries (1) at least annually, (2) upon the termination of a trust, or (3) upon a change in trustee.
You must keep a written record showing that every month you completed a three-way reconciliation where you “reconciled” or balanced the account journal against the individual ledgers and the bank statement with canceled checks. You must perform this three-way reconciliation for each client trust account you keep.
Trustees must maintain separate accounts for each trust, with each client's funds handled individually. Detailed Record-Keeping: Every financial transaction involving the trust must be meticulously recorded. This includes deposits, disbursements, interest income, investment gains, and expenses.
California law requires attorneys who handle client funds or funds entrusted by others to hold them in one or more interest-bearing bank accounts labeled as a "Trust Account," or words of similar import.
What Should a Trust Accounting Include? An account statement with all principal and income held by the trust. A detailed breakdown of assets/liabilities. Trustee compensation. A report of the agents a trustee hired. A legal statement that beneficiaries can object to the trust accounting.
Per California probate code section 16063, an accounting should include the following information for the last fiscal year of the trust or the time since a trustee last prepared and provided an accounting: A statement of all receipts and disbursements of principal and income. A statement of assets and liabilities.
Improve your client trust accounting skills and learn about your reporting requirements under the State Bar's Client Trust Account Protection Program (CTAPP).
The trust accounting should include everything, from the purpose of the transaction to who received it. These documents will, in some ways, resemble a bank statement, except instead of covering a month, it will cover the year and have substantially more detail.
