Fiduciary Accounting Pittsburgh, PA

Fiduciary Accounting

Fiduciary accounting is a form of accounting done by someone in charge of an estate, a trustee, executor, administrator or officer of a corporation.  It is a position that requires record keeping and the preparation of reports under the jurisdiction of the court. All documents pertaining to an estate are collected and recorded by the fiduciary. The fiduciary manages assets for the profit of the beneficiary (also called the principal) and not for his own profit.

The elderly or incompetent, as well as children, are most often in need of a fiduciary.  A fiduciary may be a receiver in a bankruptcy case. The fiduciary has a duty not to place himself in a position where there is conflict of interest.  The fiduciary may invest assets for the beneficiary but may not profit from any transactions involving those assets. All profit must be reported to the principal. There is a growing concern over the practice of time-based costing. In cases where an attorney, for example, acting as a fiduciary, delays certain processes in order to bill excessively, this is a breach of duty.