Trustee

What is the name of your state? Trust is under Texas jurisdiction. The Trustee is a CPA liscensed in Oklahoma and Texas.

My trustee has not given me an accounting since the trust was funded. It was funded in July of 2003 and it is now September 2004 and the trustee has still not given me an accounting. I began asking for an accounting in June and still nothing.

The trust says that the trustee is to give me disbursements quarterly or more often but nothing about when he is to give me an accounting.

I have three (3) questions:

1. Since the funding of the trust when should the trustee legally give me an accounting?

2. Since June 2004, I have requested an accounting by phone, e-mail, fax, Certified Mail and driving to the trustee's office and requesting all documentation. It is now September and no resolution in sight. Since I began asking for an accounting in June when is it considered that the trustee has gone to far in not giving me an accounting?

3. For a year and two month would it be considered the trustee has gone too far not giving an accounting since the trust was funded in July 2003 and it is now September 2004 by not giving me an accounting?


Please help me, I am very concerned that the trustee is doing something wrong.

Congratulations on being smart enough to recognize the need for an accounting, but Texas is a state that does not require that beneficiaries be given an accounting and he is not required to provide you with that information and that is probably why there is no mention of this in the trust. It is somewhat rude for him not to tell you that directly, but he has not done anything improper yet and I don't think you have anything to be concerned about.

Have you been receiving your quarterly distributions?

If I were you I would ask him for a copy of the trust tax return by stating "I just want to make sure that everything has been done correctly and I don't want the federal or state tax authorities coming to me for any of the tax liability."

At some point you will want to consult with a local (Texas) trust attorney to find out if there are other ways that you can legally get the information you seek. It is possible that trust information might be reported to the court under certain conditions or you may possibly want to ask the court to require this trustee to post a trustee's bond if you are concerned about theft or potential for financial abuse.

DANDY DON IN OKLAHOMA ([email protected])

Thank you so much for your reply. I do have some news that I found out today about Texas laws.

If the will and trust do not give an outline of accounting then as long as the will and trust have not released the trustee from giving an accounting then the trustee is subject the Texas Trust Code.

Texas Trust Code does state the trustee has to give an accounting to the beneficiaries once every twelve months. If the beneficiary asks for an accounting and no accounting has been giving then the trustee has breached fiduciary duties.

The answer to your guestion about me getting my distributions. Yes and NO. I am getting partial income distributions but only when I ask other than that I don't receive anything. The will and trust state very clearly that I am to receive all income to the trust guarterly or more often, which is not taking place.

Again thank you so much for your help and insight, hope I have help you in return.

Trustee Issues

I have news. We got a partial accounting. The trustee has overly paid himself by the standards that all local banks & trust fee standards. Will & trust stated that the trustee was to pay him self by Texas Trust Code which is to equal fees of the surrounding area, size of the trust and income.

Trustee paid himself about 7 times over what is normal.

He also spent thousands of dollars purchasing equipment and software for the trust but put it in his company name.

He also paid several attorneys for work that he had them do for him. I quote from him "They are looking over the trust documents to protect me". Me meaning himself not the trust or the beneficiary.

Not sure what to do and where to go from here.

Consult with an attorney.

Get your own trust attorney to find out whether the other trustee posted a trustee's bond and also to find out whether the other trustee is guilty of breach of fiduciary duty by taking assets he was not entitled to and putting them in his company's name.