Which of the following is considered an interested party in a trust or estate for accounting purposes?

• A. Settlor
• B. Income beneficiaries
• C. Remainder persons
• D. All of the above

Answer: (D)

In trust or estate accounting, an interested party means anyone who has a present or potential stake in the assets or in how the trust is administered. Income beneficiaries clearly fit this, because they receive distributions and their rights depend on how income is allocated. Remainder beneficiaries also count, since they have a future right to the principal after the income interests end. The settlor, who created the trust, is included too—especially if the trust is revocable or the settlor retains powers to revoke or modify the trust, because those powers can impact what happens to the assets. Because each of these groups can be affected by how the trust is managed and reported, all of them are considered interested parties for accounting purposes.