Does a trustee have to provide accounting in California?
Yes. Probate Code section 16062 requires the trustee to account at least annually, at the termination of the trust, and on a change of trustee, to each beneficiary to whom income or principal is required or authorized to be currently distributed.
Some trusts try to waive the duty. For certain sole trustees, such a waiver is void as against public policy (Probate Code section 16062), and Probate Code section 16064 sets out the situations where an accounting is not required. The trust and the facts have to be read together.
What should a trust accounting include?
Under Probate Code section 16063, an accounting covers the last complete fiscal year or the period since the last one, and must show receipts and disbursements of principal and income, assets and liabilities at the end of the period, and what the trustee and any agents were paid.
- Receipts and disbursements of principal and income during the period.
- A statement of the assets and liabilities of the trust at the end of the period.
- The trustee’s compensation for the period.
- The agents the trustee hired, any relationship they have to the trustee, and what they were paid.
- A statement that you may petition the court under section 17200 to review the account and the trustee’s acts.
- A statement that claims for breach of trust may not be made more than three years after you receive an account or report that discloses the facts.
That last point matters. Once you receive an accounting that discloses a problem, the three-year limit in section 16063 can start to run. Read every accounting when it arrives, not when the trust is about to close.
Is a trustee obligated to provide financial information?
Yes. Apart from the formal accounting, Probate Code section 16061 requires a trustee to report information about the administration of the trust relevant to your interest when you make a reasonable request. You are also entitled to a copy of the trust terms.
If the trustee will not give you the trust terms, you can petition to compel them right away. For information under section 16061, the court route opens once the trustee has failed to respond within 60 days of your reasonable written request and you have not received the information in the six months before it (Probate Code section 17200).
What happens if a trustee does not provide accounting?
You make a written demand, wait 60 days, and if nothing arrives, petition the probate court to compel the accounting (Probate Code section 17200). A trustee who still will not account is in breach of trust, which is a ground for removal under Probate Code section 15642.
- Written demand. Ask in writing for an accounting covering a specific period. Keep a copy and proof of delivery.
- Wait 60 days. The trustee has 60 days to respond before you can go to court, unless an account was given in the six months before your request.
- Petition to compel. The court can order the trustee to account by a set date.
- Review and object. Once the accounting is filed, you can object to items that are wrong, unexplained or improper.
What can an accounting reveal?
Often the problem itself: money paid to the trustee or their family, property sold without notice, expenses that do not add up, or assets that have simply disappeared. What the accounting shows decides the next step.
- Surcharge. The court can order the trustee to repay losses caused by a breach of trust.
- Removal. Breach of trust and failure to act are grounds for removal under section 15642. See removing a trustee.
- Double damages. A person who in bad faith wrongfully took or kept trust property can be liable for twice its value (Probate Code section 859).
- A contest. If the accounting points to an amendment made under pressure, see contesting a trust.
What happens if an executor refuses to provide an accounting?
An executor is in a different position from a trustee. A probate estate is supervised by the court, and the executor’s accounts are filed with the court for approval, so an interested person can ask the probate court to order the executor to account.
| Trustee | Executor | |
|---|---|---|
| Supervised by | Nobody, unless a beneficiary goes to court | The probate court |
| When they account | At least annually, at termination and on a change of trustee (Probate Code section 16062) | To the court during the probate case |
| If they refuse | Written request, then a petition to compel after 60 days (Probate Code section 17200) | Ask the probate court for an order |
This page explains California law in general terms. It is not legal advice, and reading it does not create an attorney-client relationship. Statutes change; the code sections linked above are the current text on the California Legislature’s website.