Whether someone is appointed as a guardian of a protected person’s property (previously known as “ward”), or appointed as a personal representative of a probate estate, or as a trustee of a trust, all are commonly referred to as a ‘fiduciary.” A fiduciary possesses a duty to lookout for the best interests of an individual (like a protected person in a guardianship), or a group of individuals (like heirs/devisees in a probate or beneficiaries in a trust). Failure to provide a timely and proper accounting results in being removed. Also if a fiduciary does not understand the requirements of the Nevada Revised Statutes and the applicable will or trust, and s/he fails to timely provide an informative accounting, s/he will personally pay the legal fees of the party bringing the claim.
Each fiduciary has unique reporting requirements that differs from the average business accounting. Most notably none of the requirements under the Nevada Revised Statutes (NRS) and none of the local rules of the District Courts follow Generally Accepted Accounting Principles aka GAAP. In Nevada fiduciary accountings are a world of their own.
Whether you are administering a probate estate, trust, or a guardianship, an often overlooked duty is keeping interested persons (heirs, devisees, beneficiaries and the courts) informed of the progress of administration and what will be distributed. Think about it, this duty is important! If you were a beneficiary of a trust, you likely would want to know how much you are inheriting and when you will receive your distribution. You will also want to know if the fiduciary (personal representative, trustee, guardian) is protecting property you will inherit, whether funds are spent wisely, and to ensure that everyone gets their fair share.