Check out our new course Fiduciary Accounting and Passing of Accounts! Applicable to Canadian Trustees: https://www.epc-canada.org/Sys/Store/Products/410668
Trust accounting focuses on the daily, often administrative tracking and safeguarding of client funds held in trust (e.g., IOLTA)accounts.
Fiduciary accounting, in contrast, is a comprehensive, often court-mandated, reporting process that tracks income, expenses, and asset valuation over time for trusts, estates, or guardianships.
Key Differences:
Purpose & Scope: Trust accounting is primarily bookkeeping to track cash receipts and disbursements. Fiduciary accounting is a broader, detailed report of assets, income, and distributions required for beneficiaries or courts.
Context: Trust accounting is commonly used by attorneys for client deposits. Fiduciary accounting applies to trustees, executors, and guardians managing complex estates.
Complexity: Trust accounting involves simple, secure holding of funds, while fiduciary accounting requires managing, valuing, and distributing various assets (stocks, real estate).
Timing: Trust accounting is ongoing and daily; Fiduciary accounting is often periodic, such as annual reports or final accounting upon closing an estate.
Estate and Trust Administration Software.
Key Takeaways:
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Trust Accounting (Bookkeeping): Focused on compliance and separating client money from firm money
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Fiduciary Accounting (Reporting): Focused on accountability, transparency, and calculating income/capital changes for beneficiaries.
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We have a new Fiduciary Accounting and Passing of Accounts course with Whaley Estate Litigation (WEL) Partners.
This self study course qualifies for 5 cpd hours: .75 hours Professionalism and 4.25 hours Substantive, with videos and slides.
See what else we have here on our Courses page.
