Trust Accounting
Learn how trust accounting works in a revocable living trust, including record-keeping, distributions, and trustee responsibilities.
What records does a trustee have to keep for a living trust?
A trustee is responsible for maintaining accurate financial records of all trust activity, including income received, expenses paid, and distributions made to beneficiaries. This typically means keeping bank statements, receipts, investment reports, and a running ledger that shows how trust assets have moved over time. Beneficiaries generally have the right to request an accounting, so organized records protect the trustee from disputes. Sloppy or missing records are one of the most common sources of conflict between trustees and beneficiaries after a loved one passes.
