Consequenses of Failure to File

Loss of Commission

The failure of a trustee to timely file the inventory and/or accounts during the duration of the trust could result in the total or partial forfeiture of commission due to a trustee. 

Delinquency Letter

In the event the trustee has failed to file an inventory or account by the due date, the Commissioner of Accounts issues a delinquency letter requiring the filing of the inventory or account within thirty (30) days.  The fiduciary incurs a personal penalty approved by the Henrico County Circuit Court for the fiduciary’s failure to timely file.  This fee is paid personally by the trustee. 

Issuance of a Summons

In the event a delinquency letter fails to attract the attention of the trustee to the obligations to file the proper documents, a summons shall be issued by the Commissioner of Accounts requiring the necessary documentation to be filed within thirty (30) days.  This results in an additional personal liability to the trustee and may result in more severe action if the trustee fails to comply with the terms of the summons.

Report to the Court and Order to Show Cause

The Commissioner of Accounts is required to report to the Circuit Court of Henrico County the failure of any trustee to properly file an inventory and/or account throughout the course of the trust.  This report is filed with a petition requesting an order requiring the trustee to appear before the Judges of the Henrico County Circuit Court  and show cause why fines of up to $500.00 should not be imposed and/or additional contempt of Court proceedings be conducted for the failure to file the required documents.  If the fiduciary fails to provide the documents prior to the scheduled Court hearing, a Court appearance by the fiduciary is mandatory and the fiduciary will have to explain to the Court why the required filings have not been made.

The possible results to the trustee under a show cause proceeding include:

  1. A fine up to $500.00;
  2. Further proceedings for contempt of Court;
  3. Removal as trustee;
  4. Forfeiture of personal bond by the fiduciary combined with forfeiture by the corporate surety, if applicable;
  5. Personal payment of fees and costs due to the Commissioner of Accounts; or
  6. Incarceration.

 

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