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Level 10
January 30, 2026

Trustee not providing information - the "flags are there"

  • January 30, 2026
  • 3 replies
  • 13 views

Client is elderly and not competent and owns several properties.

Trustee has bank account authority for the client.

Trustee is not providing information to file the 1099s

Trustee is not allowing me and other key people to see bank statements

Trustee told the property manager that the client owed 400K in taxes for 2025.  The client owed 0.

Trustee is not allowing the bookkeeper to proceed with setting up QuickBooks (which he agreed to do six months ago.)

These are all red flags in my mind.  I'm going to call Aon to see how to proceed.

I am inclined to pressure the trustee to allow us to do the bookkeeping and tax filing in some way, but I have not been in this situation.

 

3 replies

BobKamman
Level 15
January 30, 2026

Check on state law.  Here in Arizona, the first call should be to the police, not to the insurance company.

Arizona Revised Statutes Section 46-454:

...C. An attorney, accountant, trustee, guardian, conservator or other person who has responsibility for preparing the tax records of a vulnerable adult or a person who has responsibility for any other action concerning the use or preservation of the vulnerable adult's property and who, in the course of fulfilling that responsibility, discovers a reasonable basis to believe that abuse, neglect or exploitation of the vulnerable adult has occurred shall immediately report or cause reports to be made of such reasonable basis to a peace officer or to the adult protective services central intake unit. The reports required by this subsection shall be made immediately by telephone or online.

And if you don't do that, you are guilty of a crime yourself. 

...M. A person who violates this section is guilty of a class 1 misdemeanor, except that if the failure to report involves an offense listed in title 13, chapter 14, the person is guilty of a class 6 felony.

Level 10
January 30, 2026

Thank you, Ironman. Thank you, Bob.

I see a few California statutes which are relevant, but I don't see one that directly states that a CPA is a mandatory reporter.

Right now, we are trying to get information from the attorney to file 1099s (for the elderly individual and for the Special Needs Trust). I think it is best that I don't file a 1099 for the amount paid to the attorney unless I am absolutely certain of the amount. I suppose it could be claimed that preparing a 1099 with an amount lower than actually paid to him is assisting a crime. I don't know.

 

15610.30. (a) “Financial abuse” of an elder or dependent adult occurs when a person or entity does any of the following:

(1) Takes, secretes, appropriates, obtains, or retains real or personal property of an elder or dependent adult for a wrongful use or with intent to defraud, or both.

(2) Assists in taking, secreting, appropriating, obtaining, or retaining real or personal property of an elder or dependent adult for a wrongful use or with intent to defraud, or both.

BobKamman
Level 15
January 30, 2026

If you are not a mandatory reporter, you can report anonymously.  Of course that brings up questions about client confidentiality.  And who is the client?  Did you work with the taxpayer directly before he reached the current level of incapacity?  Or do you know him only through the trustee?  

IRonMaN
Level 15
January 30, 2026

I smell a thief.  This is a really good time to listen to Bob ---------------------- not that you can't listen to Bob at a really bad time.

Slava Ukraini!
Level 10
February 6, 2026

Update:

The attorney trustee didn't want to release the information to the bookkeeper because she doesn't want her to be bookkeeper and he didn't want to tell her.

He gave me all the accounting information and bank statements I need. I didn't hear anything indicating that he is hiding anything.

Much ado about nothing.

sjrcpa
Level 15
February 6, 2026

So the trustee will ignore the bookkeeper but not fire the bookkeeper?

And put you in the middle?

The more I know the more I don’t know.
Level 10
February 6, 2026

Good summary. 

I don't know why is such a shy guy, when it comes to people.