Trust Accounting
The process of tracking and reporting money and assets held in a trust.
What is Trust Accounting?
Trust Accounting is the practice of documenting and reporting financial transactions, assets, and distributions within a trust, ensuring compliance with fiduciary duties and legal obligations.
Why It Matters?
It maintains transparency, prevents mismanagement, and protects beneficiaries’ interests.
Example
A trustee prepares a trust accounting report showing income, expenses, and distributions to beneficiaries for the year.
Related Terms
Mediation
Litigation