"Your Account Is Wrong!"

This is the last thing any attorney who represents executors, trustees and conservators wants to hear. And yet after more than a quarter century of experience scrutinizing fiduciary accounts, our firm has concluded that virtually every high-net-worth fiduciary account filed with the court has fundamental flaws. This has resulted from the complex rules of the Principal and Income Act, and in particular the rules for allocating assets and expenses among subtrusts.

Attorneys, CPAs Speak Different Languages

Even accounts prepared by qualified CPAs familiar with fiduciary tax issues almost never meet the standards of the Principal and Income Act. CPAs know how to apply accounting concepts, not legal rules; attorneys are trained in legal rules, not accounting concepts. So, like two people who speak different languages, the attorneys and CPAs involved in preparing fiduciary accounts predictably misunderstand each other.

As a result, if you are an attorney who represents a fiduciary who has prepared a formal account for the court, even if a qualified CPA ran the numbers, we can say with almost complete certainty: "Your Account Is Wrong!"

Successful Outcomes Versus Probate Attorney Malpractice

In the past, many of these flawed accounts obtained court approval, despite noncompliance with the law. But that has changed. With increasing numbers of blended families producing children related to one spouse but not the other, and with the aging population now experiencing a huge turnover of wealth to the next generation, an improper subtrust or expense allocation may make a difference of hundreds of thousands of dollars to the beneficiaries.

Good probate attorneys know what's at stake. But they may not have the expertise to properly evaluate an account in light of the complex Principal and Income Act. If so, whether they represent income beneficiaries, remaindermen or fiduciaries, they need to seek out experts to evaluate fiduciary accounts to determine if the rules have been properly applied, and if not, how it benefits or harms their client. Failure to do so constitutes malpractice.

We Make The Analysis; You Take The Credit

Our firm, Fiduciary Accounting Consultants, is here to help attorneys avoid the pitfalls of fiduciary accounts, identify flaws that affect their clients' interest, and provide in a clear concise manner the information attorneys need to reach successful outcomes. We make the analysis; you, the probate attorney, takes the credit with their clients.

For more information about retaining our services, please click on the Our Services tab above.