What is fiduciary accounting?

A fiduciary accounting really is “just” information of a financial nature presented in a particular (and very specific) format.
Per Ernst & Young’s US Fiduciary/Trust & Estate Accounting Services Senior Manager:
“In brief
  • A fiduciary accounting (sometimes called a “court accounting”) is a comprehensive report of the activity within a trust, estate, guardianship or conservatorship during a specific period.
  • It shows all the receipts and disbursements managed by the executor, trustee, guardian or conservator (the fiduciary), properly allocating all transactions between principal and income.
  • These accountings are regulated by their governing instruments and state law.”
  • A fiduciary accounting must include all of the assets of the trust, estate, guardianship or conservatorship, and must “balance” – to the penny!

A fiduciary accounting may be required by the Probate Court (Conservatorship, Guardianship, Estate, court-supervised trust,..) or may be required to be sent to a beneficiary of a trust (there may be an income beneficiary and/or a residuary beneficiary).

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