When it comes time to terminate an Anaheim revocable trust, you are likely anxious to finish the process and move on from the responsibilities of serving as a trustee. One of the steps normally required in the trust termination process is to prepare an accounting for the beneficiaries. In certain circumstances, however, you may be able to use a less formal approach to this requirement. This is done by obtaining a waiver from the beneficiaries.

Why should you consider using a waiver instead of preparing a formal accounting during the Anaheim revocable trust termination process? The following are several reasons:

  • The formal accounting required under the California Probate Code for terminating a trust is an involved and detailed process. It may take significant financial resources to prepare.
  • The formal accounting must be presented in a specific way as outlined by the California Probate Code in order to be valid.
  • In many circumstances, the formal accounting is more detailed than the beneficiaries will feel is necessary.
  • In addition to being expensive, the formal accounting may delay the closing of the trust since it takes significant time to prepare.

Simply ignoring the requirement of providing an accounting is not an option, as it would expose the trustee to potential liability in the future. Fortunately, an alternative is for the trustee to obtain waivers from the beneficiary in exchange for a summary report of the financial details of the trust administration. This report may include such information as date of death values of trust assets, current values of these assets, the trustee’s compensation, and the distribution of the trust assets to the beneficiaries.

Using a summary report and obtaining a formal accounting waiver from beneficiaries may save both time and expenses during the trust termination process. To learn more, contact the Law Office of James F. Roberts & Associates, APC. Call our office of experienced Anaheim trust administration attorneys today at (714) 459-5481.

James F. Roberts
Founder and owner of the Law Office of James F. Roberts and Associates, a premiere estate planning law firm
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