Trusteeship Accounting

Most Trusteeship Orders will require the Trustee to account to the court for their management of an adult’s finances. If a child is taking care of their parent’s funds with a Trusteeship Order the accounting obligation allows the court to ensure that everything is being done legally. Preparing an accounting application can take a lot of work especially if the accounting records are not thorough.

Every Trustee has an obligation to keep detailed records of their management of an adult’s finances. This includes copies of bank statements, invoices, receipts, and other financial documents. The Trustee should be keeping records starting on the day the Trusteeship Order is granted. If the finances of the adult are consolidated into a few accounts it will be easier to maintain records as most of the transactions will come out of those few accounts.

Most court orders will require a Trustee to account to the court every 2-5 years. With longer accounting periods it will help reduce the amount of times a Trustee must make the court application. This will reduce legal fees. However, if the accounting period is longer then a Trustee must ensure that their records are thorough. It is very hard to find account statements and receipts 5 years after the fact. Good accounting records will also help to reduce legal fees as it will take less work to organize the documents for the court’s review.

Finally, bad accounting records can put a Trustee at risk of personal liability. If there is no explanation for a sum of money being moved from the adult’s accounts the courts may presume that the Trustee used it for themselves. Good accounting records will protect the Trustee from having to pay into the adult’s accounts any funds which are not accounted for. Detailed accounting records is a form of preventative medicine which will reduce a Trustee’s stress when they need to account to the court.