Trust accounting, also known as probate accounting, is a record of an estate’s transactions during a reporting period. This process is important because it ensures all funds are kept safe and secure. By keeping track of every transaction, ranging from withdrawals to investment earnings, and monitoring each type of fund separately, it’s easier to manage transparency and make sure all legal requirements are met.
In California, trustees are required to provide an accounting at least once a year, but the frequency may depend on the trust document. Beneficiaries can also request an accounting in writing, and the trustee must provide it within 60 days.
Also, in California, trust accounting includes information about:
Several state requirements and regulations need to be considered and carefully followed. According to probate code sections 16060 and 16062, trustees need to keep beneficiaries informed throughout the process on how they are managing the trust. At least once per year, they also need to provide an accounting. An accounting is also required whenever a trustee changes or a trust is terminated.
Some of the components and mandatory elements include:
At SD Mayer & Associates, our full-service accounting, advisory and outsourced accounting firm can help with all aspects of the trust accounting process. Because we are a smaller firm, we provide a more personalized approach to our client’s needs. We specialize in an inclusive, holistic approach to financials. Discover how our “Accounting + Advisory for Life” approach can help you through all stages of life.
As part of the trust/ probate accounting process, you won’t need to file or register it with any government body. The process must follow the California Probate Code though in order to close an estate. This happens before money and assets gets distributed to beneficiaries. Steps like resolving creditors’ claims and paying debts and taxes need to come first.
No matter your trust accounting needs or goals, SD Mayer & Associates is here to serve as your trusted advisor, helping you reach financial security and strategize for future growth. If you’re ready to take the next step, we offer trust account services in California that will help get you there.
With everything we do, it’s our goal to help our clients reach their financial goals and achieve long-term success. Reach out to us today by either giving us a call at 415.691.4040 or by filling out our online contact form to learn more and get started.
