An accounting by a fiduciary usually involves an inventory of assets, debts, income, expenditures, and other items, which is submitted to a court. Such an accounting is used in various contexts, such as administration of a trust, estate, guardianship or conservatorship. Generally, a prior demand by an appropriate party for an accounting, and a refusal by the fiduciary to account, are conditions precedent to the bringing of an action for an accounting.
In Massachusetts, the demand for accounting from a fiduciary such as an Executor, Conservator, Trustee, or Legal Guardian is a crucial aspect of ensuring transparency, accountability, and proper management of assets. This requirement serves to protect the interests of beneficiaries and wards, as well as maintain the fiduciary's compliance with their responsibilities. Various types of Massachusetts Demand for Accounting from a Fiduciary may include: 1. Executor's Demand for Accounting: When a person passes away and appoints an Executor to administer their estate, beneficiaries or interested parties may request an accounting. This detailed report outlines the income, expenses, distributions, and overall management of the estate's assets. 2. Conservator's Demand for Accounting: In situations where an individual is deemed unable to manage their own financial affairs, a conservator may be appointed by the court to provide assistance and manage the person's assets. Interested parties can demand an accounting to ensure the assets are appropriately managed, utilized, and protected for the conservative's benefit. 3. Trustee's Demand for Accounting: Trustees are responsible for managing and distributing the assets held in trust for the beneficiaries. Beneficiaries have the right to request an accounting to evaluate the trustee's actions, including investments, distributions, and expenses incurred in the administration of the trust. 4. Legal Guardian's Demand for Accounting: Legal guardians have the duty to oversee the welfare, financial affairs, and assets of an incapacitated person or minor. A demand for accounting from interested parties may focus on verifying the proper management of funds, expenditures, and the overall well-being of the person under guardianship. These demands are protected by Massachusetts state law, such as Massachusetts General Law Chapter 206 (Estates Administration Act), Chapter 206A (Conservators), Chapter 203 (Trustees), and Chapter 190B (Guardians and Conservators). The fiduciary is obliged to respond promptly and provide a detailed and accurate account of financial transactions, receipts, and disbursements. Failure to comply may result in court intervention, removal of the fiduciary, or other legal consequences. Overall, the demand for accounting provides a crucial mechanism for beneficiaries, wards, or interested parties to monitor the fiduciary's actions, address any potential mismanagement concerns, and ensure the protection of assets and the fulfillment of their rightful entitlements.
