Final Account

The final account distributes all remaining assets of the trust.  The trust account must show a zero balance on hand.  

The distributions to the beneficiaries must conform to the requirements of the trust. Thus, the trustee must address any disproportionate distributions made in prior accounts, if any, and the trustee must satisfy all special distributions that the trust may direct.

Absent specific authority given in the trust, or the grant of fiduciary statutory powers of Virginia Code § 64.2-105 (formerly § 64.1-57) in the trust, distributions due to a minor must be made to their duly qualified guardian.  However, if the distribution is $25,000 or less, the fiduciary has discretion to distribute such assets to an adult, or to a trust company as custodian for the benefit of a minor, if the transfer is not prohibited by, or inconsistent with, provisions of the trust and the fiduciary believes that the transfer will be in the best interest of the minor.  

Absent specific authority given in the trust, distributions to an incapacitated adult must be made to their court appointed conservator or to the beneficiary’s agent under a power of attorney.  A copy of the conservatorship order or power of attorney must be provided with the accounting to establish the authority of the conservator or agent to receive any such distribution.

In some circumstances, upon request, the commissioner may approve the termination of a supervised trust of $100,000 or less, if deemed uneconomic, pursuant to proper notice and upon presentation of a plan consistent with the settlor’s intent.  See Virginia Code § 64.2-732 and the trust termination page on this website for further information.  The fiduciary may wish to seek legal advice regarding the termination of a supervised trust.  This office cannot give legal advice.

Since a final account needs to show a zero balance, most fiduciaries question how the final filing fee can be paid to the commissioner.  The fiduciary should calculate the final account filing fee using the Commissioner’s Fee Schedule provided on this website.  If you are uncertain about calculating the filing fee, call the commissioner’s office for further direction.  Once determined, there are several ways to pay the fee:

• Prepay the filing fee and report the payment as a disbursement on the account. Please include “prepayment of final account” on the memo of your check. 
• Advance the filing fee to your attorney’s escrow account. Your attorney can pay the fee from his account when the final account is filed.
• Advance the filing fee to your personal account. You may then pay the fee from your personal account when the final account is filed.
• Pay the filing fee from the trust account when you file and submit the zero bank statement once the check clears. Please include a statement in your cover letter that a copy of the bank statement will be forthcoming.  Your account will not be approved until the statement is provided.