As trustees we are frequently confronted with arguments
according to which keeping proper financial accounts would be
expendable. For any professional trustee the answer is obvious
clear: proper financial accounts are not only recommended, but
compulsory.
Being competitive with regard to the cost of trust is a
fundamental element for a trustee's success. For this reason
some trustees may be tempted to compromise on the need to keep
proper financial accounts, especially when settlors, beneficiaries
or their advisors do not recognize the need and added value of
keeping financial accounts, e.g. in addition to the bank statements
that are available anyway. Trustees may take comfort from the fact
that the trust instrument gives them the freedom to do so and by
asserting that the year-end bank valuations, list of
incoming/outgoing transactions are providing sufficient information
for the beneficiaries. Also, some trustees do not have the in-house
expertise to prepare and
