When someone holds property or other assets for another person’s benefit, a trust relationship has been established. There are countless potential trust relationships, and each is dictated by why it was set up. An uncle, for instance, could put funds into a trust that are distributed to his nieces as they get older. Even an attorney holding onto funds received in a lawsuit establishes a trust relationship. In each of these cases, trust accounting is the one constant. California has very strict laws when it comes to trust accounting. They must set up an entirely different account, for instance, and not allow these funds to be kept with their own personal money. Thorough records must also be kept whenever a transaction occurs, and in some situations, there may even be tax implications for the trustee. If you’ve found yourself thrust into the position of trustee and don’t fully understand the accounting implications, don’t fret. This is a very complex area of the law, and the trust attorneys at Lobello Lamb Lewis & Riley LLP are here to help.