“Trust accounting is the process of tracking, recording, and reporting all financial activity within a trust. This includes income received, expenses paid, assets held, and distributions made to beneficiaries. A trustee has a legal obligation to maintain accurate and complete financial records throughout the life of the trust, and those records must be made available to beneficiaries upon request. Proper trust accounting is not simply good practice — it is a core fiduciary duty.

This guide walks through the essential elements of trust accounting, including how to separate trust income from principal, how to document transactions correctly, what financial statements a trustee is expected to produce, and how trust accounting differs from personal or business accounting. Whether you are a new trustee trying to understand your obligations or an experienced one looking to strengthen your recordkeeping practices, this guide provides the foundation you need to manage trust finances accurately and transparently.”