Consequences of Failing to Provide Estate Accountings

Once a person passes away, the personal representative of their estate, or the trustee of a trust, has a legal duty to manage and distribute the assets in accordance with Florida law and the terms of the estate planning documents. A critical responsibility that often leads to estate litigation is the representative’s duty to provide regular, accurate accounting numbers to beneficiaries.

Failure to provide estate accountings can lead to removal, financial penalties, and legal liability. Whether you are managing an estate or questioning how it’s being handled, legal guidance is key to protecting assets and preserving family harmony. Share your concerts with a Pompano Beach estate litigation lawyer to explore paths forward.

Is Providing Accounting Numbers a Legal Duty?

Yes, under Florida law, both personal representatives and trustees must keep beneficiaries informed about the administration of the estate or trust. This includes providing detailed accountings that outline:

• The assets under administration
• Any income or expenses incurred
• Distributions made to beneficiaries
• Debts or obligations paid

For personal representatives, Florida has state statutes in place that require the filing of an inventory and a final accounting unless the beneficiaries waive this requirement. Also, a statute mandates that a trustee provide accountings at least annually, or upon reasonable request by a qualified beneficiary.

What Happens When Accountings Are Not Provided?

When a personal representative or trustee fails to provide a required accounting, beneficiaries have the right to take legal action. This can include filing a petition or complaint for an accounting in probate or civil Court.

In some situations the removal of the personal representative or trustee is requested. When there is proof of a breach of fiduciary duty, seeking a court order for surcharge, which holds the fiduciary personally liable for losses to the estate or trust, and asking for attorney’s fees to be paid from the estate or directly from the fiduciary could be possible.

Courts take the duty to provide accountings seriously. In a recent Florida appellate case, a trustee failed to respond to multiple requests for accountings. The court ultimately ordered the trustee’s removal and imposed financial penalties for the breach of fiduciary duty. This ruling reinforced that beneficiaries are entitled to transparency and that failure to comply with accounting obligations will not be tolerated.

Similarly, in another recent Florida case, the court emphasized that a trustee’s delay in providing financial records (despite multiple requests) justified removal and sanctions. The ruling clarified that even if the trustee claims to be acting in good faith, unreasonable delay or refusal to provide financial disclosures can amount to a breach.

If you are a personal representative or trustee, working with an experienced Pompano Beach estate litigation lawyer ensures you meet your legal obligations and avoid unnecessary disputes. If you’re a beneficiary being left in the dark, a lawyer can help you enforce your rights.

Is it time for you to access the financial numbers you have a right to view? The attorneys at Mark R. Manceri, P.A. can help. Schedule a confidential consultation today.