Beneficiary Accounting Demand Letters

Comprehensive guide to demanding estate accountings, trust accountings, and financial information as a beneficiary in California.

When you're a beneficiary of a trust or estate, you have a legal right to know what's happening with the assets that are supposed to benefit you. Fiduciaries - whether executors, administrators, or trustees - have a duty to provide accountings and keep beneficiaries informed. A formal demand letter invokes these rights and creates pressure to comply.

This guide covers: Demanding accountings from trustees (trust administration), executors (probate estates), and administrators (intestate estates). The legal duties and procedures vary slightly, but your fundamental right to information is the same.

Why Accountings Matter

An accounting is a detailed report of what the fiduciary has done with the assets under their control. It's your window into whether your interests are being protected.

What an Accounting Reveals Why It Matters
What came in Shows all assets collected - did the fiduciary gather everything?
What went out Shows all payments and distributions - where did the money go?
What's left Current asset values - what's available for your benefit?
Who got paid Fees, expenses, professional costs - are they reasonable?
How assets are invested Investment performance - is the fiduciary being prudent?
Transactions with fiduciary Self-dealing red flags - is the fiduciary taking from you?

Common Scenarios

1. The Silent Trustee

Parent dies, sibling takes over as trustee, and you hear nothing. No accounting, no communication, no response to questions. Is the trust being managed properly? Is your sibling helping themselves? You can't know without an accounting.

2. The Interminable Estate

A parent or relative died years ago, and the estate is still "in probate." The executor gives vague excuses but no accounting. Meanwhile, bills are being paid, fees are being taken, and you have no idea what you'll ultimately receive.

3. The Inadequate Accounting

You received something called an "accounting," but it's just a bank statement or a one-page summary. Real questions aren't answered. Specific transactions aren't explained. You need more.

4. The Post-Death Discovery

You were a beneficiary of a trust for years, but the trustee (often a parent) managed it without ever telling you what was in it. Now that they've died, you need to know what you're entitled to.

5. The Dispute-Driven Demand

You suspect something is wrong - missing assets, self-dealing, excessive fees - and you need documentary proof before deciding whether to take legal action.

The 120-Day Rule for Trusts: Under Probate Code § 16061.7, when a settlor dies, the trustee must notify beneficiaries within 60 days. You then have 120 days to contest the trust. If you haven't received an accounting, demand one immediately - the clock may be running on your rights.

Your Information Rights

Trust Beneficiaries (Probate Code §§ 16060-16069)

Estate Beneficiaries (Probate Code §§ 10900-11001)

Heir of Intestate Decedent

California Legal Framework

Trust Accounting Requirements

Probate Code § 16060: The trustee has a duty to keep the beneficiaries of the trust reasonably informed of the trust and its administration.

Probate Code § 16061: On reasonable request by a beneficiary, the trustee shall report to the beneficiary by providing requested information about the assets, liabilities, receipts, and disbursements of the trust.

Probate Code § 16062: The trustee shall account at least annually, at the termination of the trust, and upon a change of trustee, to each beneficiary to whom income or principal is required or authorized in the trustee's discretion to be currently distributed.

What a Trust Accounting Must Include

Under Probate Code § 16063, a trust accounting must show:

  1. Statement of receipts and disbursements during the period
  2. Statement of assets and liabilities as of the end of the period
  3. Trustee's compensation for the period
  4. Agents hired by the trustee and their compensation
  5. Bond information, if applicable
  6. Whether any transactions involved the trustee personally

Estate Accounting Requirements

Probate Code § 10900: At the time of filing the petition for final distribution, or at any other time the court may require, the personal representative shall present a final account of administration.

Probate Code § 10950-10954: Upon petition of any interested person, or on the court's own motion, the court may order the personal representative to file an account.

What an Estate Accounting Must Include

Deadlines and Timing

Type When Accounting Required
Trust - Income beneficiary Annually, upon reasonable request, at termination
Trust - Remainder beneficiary Upon reasonable request, at termination of trust
Trust - Change of trustee Upon change, from outgoing trustee
Estate - Final With petition for final distribution
Estate - Interim Upon request, or court order for prolonged administration

Response Time

When you request information under Probate Code § 16061, the trustee must respond within a "reasonable time." Courts have interpreted this as:

Your demand letter should specify a deadline. If no response, the court can compel the accounting.

Court Remedies

Under Probate Code § 17200, the court can:

Statute of limitations: Under Probate Code § 16460, if a trustee provides an accounting that includes a limitation notice, you have only 3 years to object. If you receive an accounting and don't object, you may lose the right to challenge those transactions. Review accountings carefully and timely.

Types of Accountings

Formal Court Accounting

A formal accounting follows specific court rules and formats. In California probate courts, this typically follows Judicial Council forms or local court requirements.

Features:

Informal Accounting

An informal accounting is a report to beneficiaries that doesn't go through the court.

Features:

What's NOT an Accounting

Fiduciaries sometimes provide documents they call "accountings" that don't meet the legal standard:

Reading and Analyzing an Accounting

Key Sections to Review

1. Receipts (What Came In)

2. Disbursements (What Went Out)

3. Fiduciary Compensation

4. Related-Party Transactions

5. Investment Performance

Red Flags

Red Flag What It May Indicate
Round numbers for most entries Made-up figures rather than actual transactions
Large "miscellaneous" categories Hiding or not tracking transactions
Missing periods or gaps Selective reporting of favorable periods
Beginning balance doesn't match prior ending Unaccounted transactions between periods
Excessive cash positions Failure to invest prudently
No supporting documentation Cannot verify accuracy
Payments to unfamiliar parties Potential self-dealing or fraud

What to Request

Basic Accounting Request

☐ Complete accounting from [date] to present

☐ All receipts categorized by source

☐ All disbursements categorized by purpose and payee

☐ Beginning and ending asset schedules with values

☐ Statement of fiduciary compensation

☐ Statement of professional fees paid

☐ Disclosure of all transactions involving the fiduciary

Supporting Documentation

☐ Bank statements for all accounts

☐ Brokerage statements

☐ Check images or payment records

☐ Asset appraisals and valuations

☐ Tax returns (Forms 1041, 706, K-1s)

☐ Professional invoices (attorney, CPA, etc.)

☐ Real property records

☐ Insurance policies

Trust-Specific Requests

☐ Complete trust document with all amendments

☐ Schedule of assets as of settlor's death

☐ Certification of trust (if not already received)

☐ Prior accountings (if any)

☐ Notifications sent to beneficiaries

Estate-Specific Requests

☐ Inventory and appraisal filed with court

☐ Petition for probate

☐ Letters testamentary or letters of administration

☐ Will (if not already received)

☐ Creditor claims filed and their status

☐ Estate tax returns

Objecting to an Accounting

Grounds for Objection

Objection Process

  1. Review accounting carefully within time allowed
  2. Identify specific objections with supporting basis
  3. Consider informal resolution first (demand letter)
  4. File formal objections with court if unresolved
  5. Attend accounting hearing

Strategic Considerations

When to Demand Informally First

When to Go Directly to Court

Cost-Benefit Analysis

Consider the stakes before demanding formal court accounting:

Demand Letter Templates

Template 1: Initial Demand for Trust Accounting

Use when: You're a trust beneficiary who hasn't received an accounting.

Re: Demand for Accounting - [Trust Name] Dear [Trustee Name]: I represent [Client Name], a beneficiary of the [Trust Name] created by [Settlor Name] (the "Trust"). [Client Name] is [describe beneficiary status - e.g., "an income beneficiary entitled to distributions of trust income" or "a remainder beneficiary entitled to a share of trust principal upon termination"]. DEMAND FOR ACCOUNTING Pursuant to California Probate Code §§ 16060-16062, [Client Name] hereby demands a complete accounting of the Trust from [beginning date - e.g., "the date of the Settlor's death" or "the date of your appointment as Trustee" or "the last accounting"] through the present date. The accounting must include: 1. A statement of all receipts during the accounting period, categorized by source (income vs. principal) 2. A statement of all disbursements during the accounting period, with payee and purpose identified 3. A schedule of all trust assets at the beginning and end of the accounting period, with current fair market values 4. A statement of all gains and losses on trust investments 5. A statement of Trustee compensation taken, including the basis for calculation 6. A statement of all amounts paid to attorneys, accountants, and other professionals 7. Disclosure of any transactions between the Trust and the Trustee or any party related to the Trustee SUPPORTING DOCUMENTATION Please also provide copies of: • All trust bank account statements • Brokerage statements for investment accounts • Tax returns filed for the Trust (Forms 1041 and K-1) • Professional fee invoices • Asset appraisals TRUST DOCUMENT [If not already received:] Please also provide a complete copy of the Trust document, including all amendments. DEADLINE Please provide the requested accounting and documentation within 60 days of this letter, as contemplated by Probate Code § 16062. CONSEQUENCES OF NON-COMPLIANCE Probate Code § 17200 authorizes the court to compel an accounting upon petition of a beneficiary. If you fail to provide the requested information, [Client Name] will file such a petition and seek an award of attorney's fees. [Client Name] simply wants to understand the Trust administration. Please cooperate. Very truly yours, [Attorney Name] [Contact Information]

Template 2: Demand for Estate Accounting (Probate)

Use when: Estate administration has been prolonged without accounting.

Re: Demand for Estate Accounting Estate of [Decedent Name], Deceased [Court Name], Case No. [Number] Dear [Executor/Administrator Name]: I represent [Client Name], a [beneficiary under the will/heir] of [Decedent Name], deceased. PROLONGED ADMINISTRATION [Decedent Name] passed away on [date], now more than [X] years ago. Despite this extended administration period, [Client Name] has not received an accounting of the estate or any meaningful information about its status. DEMAND FOR ACCOUNTING Pursuant to California Probate Code § 10950, demand is hereby made for an interim accounting of the estate administration. The accounting must include: 1. All property of the estate received, including any income 2. All disbursements made, itemized by payee and purpose 3. All property currently on hand 4. Any property sold, abandoned, lost, or destroyed 5. All claims filed against the estate and their status 6. Compensation paid to the personal representative 7. Amounts paid to attorneys, accountants, and other professionals 8. Status of estate tax returns and any taxes owed or paid 9. Estimated timeline for distribution EXPLANATION OF DELAY Please also provide a written explanation of why the estate has not been closed, including: • Pending issues that prevent distribution • Anticipated timeline for resolution • Any disputes or claims affecting administration DEADLINE Please provide the requested accounting within 45 days. COURT PETITION If we do not receive an adequate accounting, [Client Name] will petition the court under Probate Code § 10951 to compel an accounting. [He/She] will also request that the court examine whether removal of the personal representative is warranted under Probate Code § 8500. [Client Name] has waited patiently for [X] years. That patience has ended. [Attorney Name] [Contact Information] cc: [Court - optional]

Template 3: Demand for Supplemental Information

Use when: You received an accounting but it's incomplete or raises questions.

Re: Request for Supplemental Information - [Trust/Estate Name] Dear [Fiduciary Name]: I represent [Client Name], a beneficiary of the [Trust/Estate Name]. We received your accounting dated [date]. While we appreciate the response, the accounting is incomplete and raises questions that require clarification. MISSING INFORMATION The accounting failed to include the following required elements: 1. [List specific missing items, e.g., "Supporting documentation for disbursements exceeding $1,000"] 2. [Example: "Appraisals for real property and other non-marketable assets"] 3. [Example: "Breakdown of fiduciary compensation calculations"] 4. [Example: "Disclosure of any transactions with related parties"] QUESTIONS REQUIRING CLARIFICATION The accounting raises the following questions: 1. [Specific question, e.g., "The disbursement of $15,000 to 'Miscellaneous Expenses' on 6/15/2023 - please identify the specific expenses and provide receipts."] 2. [Example: "The accounting shows a beginning balance $50,000 less than the ending balance on the prior accounting. Please explain this discrepancy."] 3. [Example: "Multiple payments totaling $12,000 were made to [Name]. What is this person's relationship to you, and what services were provided?"] 4. [Example: "Trust real property at [address] appears to have no rental income for 18 months. Is the property vacant? If occupied, where is the rental income?"] DOCUMENT REQUESTS Please provide the following supporting documents: • [List specific documents needed] • [Example: "Lease agreement for property at [address]"] • [Example: "Invoices from [professional name] totaling $X"] • [Example: "Bank statements for [account] for the period [dates]"] DEADLINE Please provide the requested supplemental information within 30 days. Probate Code § 16061 requires trustees to respond to reasonable requests from beneficiaries. This request is reasonable and necessary for [Client Name] to evaluate the administration. [Attorney Name]

Template 4: Objection to Accounting

Use when: You've reviewed an accounting and found problems.

Re: Objections to Accounting - [Trust/Estate Name] Dear [Fiduciary Name]: I represent [Client Name]. We have reviewed the accounting you provided dated [date] for the period [dates]. [Client Name] objects to the following items: OBJECTION 1: EXCESSIVE FIDUCIARY COMPENSATION The accounting shows trustee/executor compensation of $[amount], which equals [X]% of trust/estate assets. This is excessive. For a [trust/estate] of this size and complexity, reasonable compensation would be approximately $[amount] based on: • [Professional trustee rates in this area] • [Statutory guidelines, if applicable] • [Limited complexity of assets] • [Minimal active management required] [Client Name] objects to $[amount] in excess compensation and demands reimbursement. OBJECTION 2: IMPROPER DISBURSEMENT The accounting shows payment of $[amount] to [payee] for [stated purpose]. This disbursement was improper because: • [Reason, e.g., "This was a personal expense of the fiduciary, not a trust/estate expense"] • [Example: "No authorization exists in the trust document for this type of payment"] • [Example: "The expense is not documented and appears fictitious"] [Client Name] objects to this disbursement and demands reimbursement. OBJECTION 3: FAILURE TO COLLECT INCOME The accounting shows no rental income from the property at [address] for [time period], despite the property being occupied. Based on comparable rentals, the property should generate approximately $[amount]/month. [Client Name] objects to the failure to collect this income and demands the fiduciary make up the $[amount] shortfall. OBJECTION 4: RELATED-PARTY TRANSACTION The accounting shows payment of $[amount] to [Name/Company], which is [describe relationship to fiduciary]. This transaction was not disclosed to beneficiaries, was not at arm's length, and constitutes improper self-dealing. [Client Name] objects to this transaction and demands it be rescinded or the funds returned. RESOLUTION DEMAND To resolve these objections, [Client Name] demands: 1. Reimbursement of $[total amount] to the [trust/estate] 2. Reduction of fiduciary compensation to $[appropriate amount] 3. Full documentation of all questioned transactions 4. Commitment to proper administration going forward DEADLINE Please respond to these objections within 21 days with either: (a) Reimbursement as demanded; or (b) Detailed written justification for each objected item If we cannot resolve these objections, [Client Name] will file formal objections with the court and seek surcharge of the fiduciary. [Attorney Name]

Template 5: Pre-Petition Final Demand

Use when: Fiduciary has ignored prior demands; preparing to go to court.

FINAL DEMAND BEFORE COURT PETITION Re: [Trust/Estate Name] SENT VIA CERTIFIED MAIL AND EMAIL Dear [Fiduciary Name]: I represent [Client Name]. This is a final demand before we file a petition with the [County] Superior Court. PRIOR DEMANDS IGNORED On [date], we sent a demand for accounting. [On [date], we sent a follow-up demand.] You have [failed to respond/provided only partial information/refused to comply]. This continued failure to fulfill your fiduciary duties is unacceptable. FINAL DEMAND You have 14 DAYS to provide: 1. Complete accounting from [date] to present, as previously demanded 2. All supporting documentation previously requested 3. [Any other specific demands] COURT PETITION If we do not receive a complete response within 14 days, [Client Name] will file a petition under Probate Code § 17200 / § 10950 requesting: • Order compelling complete accounting • Surcharge for any losses caused by breach of duty • Removal of fiduciary and appointment of successor • Award of all attorney's fees incurred • Such other relief as is just DOCUMENT PRESERVATION You are hereby notified to preserve all documents related to the [trust/estate], including: • Financial records and bank statements • Correspondence with beneficiaries • Tax returns and supporting documents • All records of transactions • Electronic communications including emails and texts Destruction or concealment of documents will be reported to the court and may result in sanctions and adverse inferences. THIS IS YOUR LAST CHANCE [Client Name] has been more than patient. You have had [X] months to provide an accounting. Your continued refusal leaves no alternative but court action. Comply within 14 days or we will see you in court. [Attorney Name] [Contact Information]

Need Help Getting a Trust or Estate Accounting?

I help beneficiaries in California exercise their right to information. Here's what I can do for you:

  • Review your beneficiary rights under the trust or will
  • Draft and send formal demands for accountings
  • Analyze accountings for irregularities and breaches
  • Identify excessive fees and improper transactions
  • Negotiate informal resolution of disputes
  • File court petitions to compel accountings
  • Prepare and file objections to accountings
  • Pursue surcharge and removal of breaching fiduciaries
Typical costs:
• Demand letter for accounting: ~$450 (includes document review and follow-up)
• Accounting analysis and written report: ~$450-900
• Petition to compel accounting: ~$240/hour
• Objections to accounting: ~$240/hour
• Surcharge litigation: ~$240/hour

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