QUESTION
Does trust beneficiary demanding accounting pay for it solely with their share of trust estate if other beneficiaries waive accounting?
Asked on Feb 29th, 2012 on Trusts and Estates - Florida
More details to this question:
Florida Law, Irrevocable Trust
My Dad & 2nd wife created trust, dad died few years ago, 2nd wife became Trustee. There are 4 beneficiaries, me and my sibling, and 2nd wife''s two children. Second wife''s son is CPA in Fla and holds himself out as accountant on this trust. I have never received an accounting on this trust, ever. I have requested and demanded. Now 2nd wife has become incapacitated and under trust I and CPA/son can become trustees. Attorney for Trust (friend of son/CPA?) tells me CPA/son doesn''t require accounting and will waive such (duh). Attorney says accounting is very expensive and if other beneficiaries waive their right to accounting and I don''t, then only my beneficiary share should be charged with the expense of the accounting. True?
1 ANSWER
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The Florida Trust Code (Florida Statues, Chapter 736) requires that accountings be provided by the Trustee of a trust unless all beneficiaries waive the requirement.(Sections 736.813 and 736.8135). The cost of providing an accounting is a normal expense of administering the trust and should be borne by the trust and not attributed to any specific beneficiary's share of the trust.
The applicable statute, quoted above, requires that the accounting take place unless all beneficiaries waive the right. Accordingly, the cost is an expense of the trust and not of the individual beneficiary. The Trust Code does not impose a burden on a beneficiary for requiring the trust to comply with the statutory requirements of the Trust Code.
Randy Coleman
Answered on Apr 06th, 2012 at 3:11 PM