Avoid estate and trust Litigation: TRUSTEE IS UNDER A STRICT FIDUCIARY DUTY TO KEEP AND RENDER A COMPLETE AND ACCURATE RECORD.
A trustee is a person who has broad discretion with very little oversight over someone else’s assets. Practically the only time a beneficiary can review what the trustee has done and have an opportunity to challenge those actions, through possible trust litigation, is when the trustee provides an accounting to the beneficiary. As such, one of the many duties a trustee has is the duty to inform and account. This fiduciary duty is critically important to ensure that the trustee is properly discharging his or her fiduciary duties in managing the affairs of the trust.
A TRUSTEE HAS A DUTY TO INFORM AND TO ACCOUNT
The law of trusts has always imposed a duty on the trustee to keep the beneficiary informed as to the administration of the trust and to account to the beneficiary for all actions taken by the trustee. Without a proper accounting disclosing how the trustee has handled the trust affairs, there is little chance of a trustee being held accountable and therefore, the trustee’s duties could be breached at will without any means of redress.
To avoid estate and trust litigation, the burden of proof is on the fiduciary to show that they have fully performed their duties, and the means for such proof is by providing a sufficient and proper accounting.
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“A trustee has a duty to maintain clear, complete, and accurate books and records regarding the trust. It is important for the trustee to keep clear and complete records so that the beneficiary can tell whether the trustee has acted with prudence, loyalty, and impartiality and whether the costs of administration have been reasonable and appropriate.”