One of the most common sources of conflict in trust administration is the flow of information from the trustee to the beneficiaries. Beneficiaries who feel kept in the dark about how trust assets are being managed become suspicious, and suspicion breeds litigation. Mississippi's Uniform Trust Code addresses this dynamic directly by imposing affirmative duties on trustees to inform and report to beneficiaries — and by giving beneficiaries specific rights to demand information about trust administration.^[1]

The Trustee's Duty to Inform

Section 91-8-813 of the Mississippi Code establishes the trustee's duty to keep beneficiaries reasonably informed about the administration of the trust and of the material facts necessary for them to protect their interests. This is not a passive obligation. The trustee must take affirmative steps to communicate with beneficiaries, particularly those who are current mandatory or permissible distributees of trust income or principal.^[2]

For irrevocable trusts, the statute requires specific notice within sixty days after the trustee accepts and funds the trust. The trustee must notify each current income beneficiary, each vested remainder beneficiary, and anyone who holds a power of appointment over the trust assets. This initial notification ensures that all interested parties are aware of the trust's existence and can monitor the administration from the outset.

The Right to Request Information

Beyond the trustee's affirmative duty to provide information, qualified beneficiaries have the right to request information about the trust's administration. The statute provides that a trustee must respond in a reasonable amount of time to a qualified beneficiary's request for information related to the administration of the trust, unless the request is unreasonable under the circumstances. The beneficiary may be required to reimburse the trustee for reasonable expenses incurred in responding to the request.

What constitutes a "reasonable" request — and what constitutes an "unreasonable" one — is determined on a case-by-case basis. A request for a copy of the trust instrument, a current accounting, or a summary of recent transactions is almost certainly reasonable. A request for every email the trustee has ever sent about the trust, or a demand for daily account statements, may be unreasonable depending on the circumstances.

Trust Accountings: What They Should Include

A trust accounting is a formal statement of the trust's financial activity over a specific period. While Mississippi law does not prescribe a specific format for trust accountings, a proper accounting should include a statement of all trust assets at the beginning of the accounting period, all receipts of income and principal during the period, all disbursements of income and principal (including trustee compensation and expenses), all gains and losses on investments, and a statement of all trust assets at the end of the period.^[3]

The accounting should be sufficiently detailed to allow a beneficiary to evaluate the trustee's investment decisions, the reasonableness of expenses and fees, and whether distributions were made in accordance with the trust's terms. Vague or summary-level accountings that obscure the details of individual transactions do not satisfy the trustee's duty.

Modification and Waiver of Reporting Duties

Mississippi law permits the settlor to modify or waive the trustee's reporting duties in the trust instrument. A trust protector or trust advisor who holds the power to direct may also modify these duties. Additionally, a beneficiary may waive the right to receive reports or other information, though such a waiver can be withdrawn at any time with respect to future reports.

The ability to modify reporting duties provides flexibility for family trusts where the settlor may not want young or unsophisticated beneficiaries to receive detailed financial information about the trust. However, practitioners should exercise caution in waiving these duties entirely, as the absence of any reporting mechanism can lead to trustee misconduct going undetected for years.

Remedies When the Trustee Refuses to Account

When a trustee fails to provide required information or refuses to respond to reasonable requests, the beneficiary has several remedies. The beneficiary may petition the chancery court to compel the trustee to render an accounting. If the court finds that the trustee has breached the duty to inform, it may order the accounting, award the beneficiary's attorney's fees and costs, surcharge the trustee for any losses that resulted from the lack of transparency, or in extreme cases, remove the trustee.^[4]

A trustee's persistent refusal to account is often the first indicator of more serious problems — self-dealing, mismanagement, or outright misappropriation of trust assets. Beneficiaries who encounter resistance to their information requests should not wait to seek legal advice. The longer a trustee operates without accountability, the greater the potential for loss.

Practical Guidance

For trustees, the best practice is to provide regular accountings — at least annually — whether or not the beneficiaries have requested them. Proactive communication reduces the likelihood of disputes and creates a record of transparent administration that will serve the trustee well if the administration is ever challenged. For beneficiaries, the lesson is to exercise their rights actively. Reviewing accountings, asking questions, and engaging with the trustee about investment strategy and distribution decisions are not signs of distrust — they are the normal functioning of the trust relationship that Mississippi law contemplates.