An accounting by a fiduciary usually involves an inventory of assets, debts, income, expenditures, and other items, which is submitted to a court. Such an accounting is used in various contexts, such as administration of a trust, estate, guardianship or conservatorship. Generally, a prior demand by an appropriate party for an accounting, and a refusal by the fiduciary to account, are conditions precedent to the bringing of an action for an accounting.
New Mexico Demand for Accounting from a Fiduciary: An Overview In New Mexico, individuals appointed as fiduciaries, including Executors, Conservators, Trustees, and Legal Guardians, are expected to execute their duties with utmost honesty, transparency, and diligence. One crucial aspect of their responsibilities is maintaining an accurate record of financial transactions and providing periodic accounting reports to interested parties. Demand for accounting serves as a mechanism for interested parties, beneficiaries, or persons with a financial interest to request a thorough review of the fiduciary's financial activities. This demand ensures transparency and accountability, safeguarding the beneficiaries' rights and interests. In New Mexico, there are different types of demand for accounting applicable to different fiduciaries, as detailed below: 1. Executor Demand for Accounting: When a person passes away, an Executor is appointed to administer their estate and distribute assets according to the decedent's wishes. Interested parties, such as beneficiaries or creditors, may file a demand for accounting to ensure that the Executor accurately handles estate assets, pays off debts, and distributes the remaining estate in accordance with the law and the decedent's will. 2. Conservator Demand for Accounting: Conservators are individuals responsible for managing and protecting the financial affairs of an incapacitated person, known as the protected person. Interested parties, like family members or the protected person themselves, have the right to file a demand for accounting from the Conservator. This demand aims to ensure that the conservator efficiently manages the protected person's assets and meets their financial needs while avoiding any mishandling or misappropriation of funds. 3. Trustee Demand for Accounting: Trustees administer trusts by managing and distributing assets held within the trust for the benefit of the designated beneficiaries. Beneficiaries or interested parties can submit a demand for accounting to a Trustee to ensure proper management, adequate investment of trust assets, accurate record-keeping, and fair distribution of the trust's income and principal. This demand is essential to uphold the Trustee's fiduciary duty and the beneficiaries' rights. 4. Legal Guardian Demand for Accounting: Legal Guardians are appointed to make financial and personal decisions on behalf of incapacitated persons, typically minors or adults with disabilities. Interested parties, such as family members or concerned individuals, have the right to request a demand for accounting from the Legal Guardian. This demand ensures that the Guardian manages the incapacitated person's finances appropriately, avoiding any potential misuse or mishandling of funds. In New Mexico, the demand for accounting from a fiduciary is a vital tool to promote trust, maintain integrity, and protect the interests of interested parties and beneficiaries. By holding fiduciaries accountable, these demands help ensure that Executors, Conservators, Trustees, and Legal Guardians act in the best interests of those they are appointed to serve. Remember, if you need to file a demand for accounting with a New Mexico fiduciary, it's crucial to seek legal advice to ensure compliance with state laws and procedures surrounding fiduciary responsibilities and demands for accounting.
