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An executor or administrator, like a trustee has to account for the property that comes into his possession. The accounting obligations of a trustee are discussed here. This article will discuss the accounting obligations of an executor or an administrator in a probate matter. What is an accounting? An accounting is a written statement detailing the financial condition of the estate. It includes: - The property belonging to the estate which has come into his hands.
- The disposition that has been made of such property.
- The debts that have been paid.
- The debts and expenses, if any, still owing by the estate.
- The property of the estate, if any, still remaining in his hands. And,
- Such other facts as may be necessary to a full and definite understanding of the exact condition of the estate.
In all cases, when the fiduciary does not file an accounting, an interested party can demand an accounting. The Tex. Probate Code 149A says that an accounting can be demanded fifteen months after the executor has been appointed. If the executor or administrator does not file an accounting with 60 days after the demand, the Texas Probate Code provides that an interested party can file suit against the fiduciary to compel the accounting.
If you are dealing with an executor, administrator or trustee and you are not receiving regular updates about the financial condition of the property under his control, you probably need to contact an attorney about your rights before the estate is squandered away.
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 One of the primary duties of a trustee is to keep full, accurate and orderly records concerning the status of the trust estate and all acts performed by him. He is charged with maintaining an accurate account of all the transactions relating to the trust property. Some states require a formal written accounting by the trustee on an annual basis, but Texas does not. Texas does have a provision that beneficiary or "interested person" can demand that the trustee give a written accounting of the trust. The Tex. Prop. code 113.151 defines the right to an accounting from trustees or other fiduciaries subject to the Trust Code. The trustee must make the written accounting within 90 days. If he does not, the court can order him to make an accounting and two personally pay the attorneys fees and costs for not making the requested accounting.
the written accounting by the trustee must show:
- all trust property that has come to the trustee's knowledge or into the trustee's possession and that has not been previously listed or inventoried as property of the trust;
- a complete account of receipts, disbursements, and other transactions regarding the trust property for the period covered by the account, including their source and nature, with receipts of principal and income shown separately;
- a listing of all property being administered, with an adequate description of each asset;
- the cash balance on hand in the name and location of the depository where the balance is kept; and
- all known liabilities owed by the trust.
Many times, people are beneficiaries of property that is being controlled by someone else but can't get any information about the status of the property. If you are not getting regular updates about the financial condition of your property in the hands of a fiduciary whether that fiduciary is an executor, administrator or a trustee, you probably need to contact an attorney before the estate is squandered.
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 Fiduciary is a general term. A fiduciary is someone who has undertaken to act for and on behalf of
another in a particular matter in circumstances which give rise to a
relationship of trust and confidence. It includes executors, administrators, holders of powers of attorney and others who have custody and control of the property or affairs of others or in whom someone has placed trust and confidence. A fiduciary duty is the most exacting civil duty recognized by law. The fiduciary owes the beneficiaries the duties of loyalty and good faith, integrity of the strictest kind, fair, honest dealing and the duty not to conceal matters which might influence his actions to his principal's prejudice.
The law often imposes the obligation on the fiduciary to place the interest of the beneficiary before the fiduciary's own interest. This is in addition to the fiduciary's duty of good faith and fair dealing.
When a fiduciary duty is imposed, equity requires a stricter standard of behavior than the comparable tortious duty of care at common law. It is said the fiduciary has a duty not to be in a situation where personal interests and fiduciary duty conflict, a duty not to be in a situation where his fiduciary duty conflicts with another fiduciary duty, and a duty not to profit from his fiduciary position without express knowledge and consent. A fiduciary cannot have a conflict of interest. It has been said that fiduciaries must conduct themselves "at a level higher than that trodden by the crowd" and that "[t]he distinguishing or overriding duty of a fiduciary is the obligation of undivided loyalty." While there are some relationships on which the law imposes a fiduciary duty such as executors, administrators, holders of powers of attorney, etc., not all relationships of trust create fiduciary duties. Mere subjective trust alone is not enough to transform arm's-length dealing into a fiduciary relationship. Businessmen generally do trust one another, and their dealings are frequently characterized by cordiality. To create a fiduciary relationship, however, there must be more than mere subjective feelings on one side.
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