An estate accounting is different from trust accounting because of the time and purpose for which it takes place, however, trust accounting follows a similar procedure with that of an estate in probate. As the trustee is also required to report all occurrences since they took over the trust and also list the names and addresses of all beneficiaries like an executor would. The account would include all unpaid claims with a detailed explanation about why they have not been paid. The plan on how the assets will be distributed will also be presented by the trustee to the court.
Estate Accounting & Trust Accounting Are Different
Estate accounting and trust accounting are important reports that are required from the executor or trustee to ensure there is transparency and accountability in the handling of the estate. Since it is their job to oversee the estate until the assets are distributed, they should be straightforward in their dealings and follow the law in executing their tasks.
Heirs To A Trust Can Not Receive Cash Advances
It’s important to distinguish an heir to trust and a beneficiary of an estate that is being probated. If a beneficiary has money stuck in probate they can receive a probate cash advance to get their inheritance money early. This is different from a trust which is set up with specific rules and guidelines which many times prohibit such options.
Example Of Trust Accounting
Trust accounting is usually done by a certified tax professional and must adhere to specific requirements.
Trust accounting is not needed for probate
Trust accounting is different from probate accounting and does not need to be reviewed by the probate courts. Trust accounting also must be submitted for tax returns unlike an accounting of an estate that happens during probate.« Back to Glossary Index