⚖️ When Trustee refuses to deliver an accounting

Trustee Refusing Accounting

Here’s what the court can do when a trustee refuses to deliver an accounting:

🔎 Sanctions & Remedies for Failure to Account

  1. Order to Compel + Deadlines

    • Judge can issue an order with a strict timeline (30–60 days).

    • Failure to meet the deadline = contempt of court.

  2. Monetary Sanctions

    • The court can fine Bad Trustee personally for noncompliance.

    • Attorney’s fees and costs for forcing compliance can be shifted to Bad Trustee (not the Trust).

  3. Suspension or Removal as Trustee

    • Courts remove trustees for repeated failure to account — especially when the delay looks intentional.

    • A neutral professional fiduciary can be appointed instead.

  4. Surcharge (Repayment of Losses)

    • If the missing accounting hides transactions that harmed the Trust, the Bad Trustee can be ordered to repay losses out of his personal assets.

    • Interest may also be added.

  5. Evidentiary Sanctions

    • Judge can bar the Bad Trustee from introducing evidence about trust transactions at trial if the they didn’t disclose them in an accounting.

    • In other words, “if you didn’t show it, you can’t use it.”

  6. Presumption of Wrongdoing

    • Courts sometimes adopt a presumption that the trustee acted improperly if no accounting is delivered.

    • That flips the burden — the Bad Trustee would have to prove he didn’t steal/mismanage.

  7. Damages & Elder Abuse Exposure

    • Repeated refusal can help establish bad faith and financial elder abuse if tied to exploitation during the settlors lifetime.

    • That opens the door for double or treble damages.

📌 Bottom line: Not delivering the accounting is one of the strongest tactical mistakes a trustee can make. Judges know it’s the backbone of trust transparency, and when it’s missing, they usually assume something is wrong.