Oregon Notice of Hearing of Petition for Accounting
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FAQ
These are your last steps, usually completed after distributing the final income amounts, paying the last expenses, and filing the final tax returns. Final accounting should be done for non-probate and probate trusts. Obtaining remaindermen assent can protect you from a potential lawsuit.
A formal non-court accounting is done by the trustee and sent out to the trust beneficiaries. Such an accounting is done in the situation where there are no lawsuits or disputed court petitions involving the trust.
A judicial accounting is a financial inventory of assets, debts, income, expenditures, and other items, which is submitted to the court. A judicial accounting is used in various contexts, such as estate administration, divorce, partnership dissolution, and others.
Before distributing assets to beneficiaries, the executor must pay valid debts and expenses, subject to any exclusions provided under state probate laws.The executor must maintain receipts and related documents and provide a detailed accounting to estate beneficiaries.
Right to formal accounting: generally speaking, a trustee is required to provide a trust accounting at least annually, at the termination of the trust, and upon a change of trustees. Accountings are also required at the termination of a trust and upon a change of trustee. (See California Probate Code section 16062(a).)
Taxes paid, disbursements made to trust beneficiaries, and gains and losses on trust assets. Fees and expenses paid to advisors of the trustee, such as attorneys, CPAs, and financial advisors.
Typically, when trust lawyers refer to a formal accounting, we mean an accounting filed in probate court subject to court approval. Whereas an informal accounting is pretty much the same document that is not filed in court. More broadly, however, an informal trust accounting could be just about anything.
For starters, all current beneficiaries, income and principal beneficiaries, are entitled to an accounting of the trust assets unless, the trust actually waives that right. But if you are a current income or principal beneficiary of a trust, you are entitled to an accounting.
