inventory and accountingn.
Reviewed by Owen Hathaway, AttorneyUpdated June 16, 2026The fiduciary's record of what's in an estate or trust and how it has been managed (assets, income, expenses, and distributions), provided to beneficiaries and sometimes the court.
An inventory is the fiduciary's itemized list of estate or trust assets and their values as of a given date. An accounting is the periodic report showing receipts, disbursements, gains, losses, and distributions over time.
Together they let beneficiaries, and where required the court, verify that the personal representative or trustee is handling property properly. Accurate inventory and accounting are central fiduciary duties and the main check against mismanagement.
Trust accounting differs from most other types of accounting in that it requires classification of transactions as Principal or Income to differentiate contributions to the estate or trust by its creator or income after the initial contribution.
Colorado requires personal representatives to prepare an inventory and, on demand or court order, accountings (C.R.S. Title 15, Article 12); trustees owe accountings to qualified beneficiaries under the trust code. Wyoming imposes comparable inventory and accounting duties.
Related terms
- personal representativeThe person appointed to settle a deceased person's estate such as gathering assets, paying debts, and distributing the rest. Older terms are executor (with a will) and administrator (without).
- trusteeThe person or institution that holds and manages trust property under the trust's terms, for the benefit of the beneficiaries.
- fiduciaryA person legally required to act in someone else's best interest, with duties of loyalty and care. It is the highest standard the law imposes.
- probateThe court-supervised process of proving a will, paying a deceased person's debts, and transferring what's left to the heirs or beneficiaries.