What does a trust accounting consist of?
Trust accounting at its most basic tells the financial story of a trust. An accounting usually includes documenting all income and expenses of the trust, and may also require the trustee to give reasons for expenses recorded.
Maintaining accurate trust accounting is not only a legal requirement but also a moral responsibility. It allows trustees to demonstrate accountability and transparency in managing trust funds. By providing a detailed record of the trust's financial status, beneficiaries can have peace of mind knowing their interests are being safeguarded.
Trust accounting is a vital component of responsible trusteeship.