Rule 9.170.Fiduciary Disclosure in Accountings
Current through August 1, 2026 · Last verified September 12, 2026
Full Text of Rule 9.170
Plain-English Summary
An accounting can balance to the penny and still hide a problem. This rule targets the transactions where a fiduciary's own interests may have touched the money, and requires them to be named and explained in the narrative rather than left sitting in a column of figures.
Several categories must be disclosed and explained. All gifts. Any transaction with a person or entity whose relationship with the fiduciary could compromise or otherwise affect the fiduciary's decisions, which the rule says includes payment for goods, services, rent, reimbursement of expenses, and like transactions. And any payment for goods or services provided by someone not engaged in an established business of providing similar goods or services to the general public, or provided at a rate higher than the one ordinarily charged to the general public.
One category gets its own treatment. Fiduciary advancements and reimbursements, to the fiduciary or to others, go in a separate exhibit with a narrative explanation of the purpose of each one, and written proof of the amount and purpose is included with the accounting.
Prior court approval is the exception. If the court approved a transaction before it happened, the narrative need not revisit it. Everything else in these categories gets disclosed, including transactions the fiduciary is confident were sound.
Frequently Asked Questions
Which transactions have to be disclosed in the narrative?
Gifts, transactions with someone whose relationship with the fiduciary could affect the fiduciary's decisions, payments to a person not in the business of providing those goods or services to the public, payments above the ordinary public rate, and fiduciary advancements and reimbursements.
Disclosure alone is not enough. The rule says the narrative must disclose and explain each of them.
What counts as a relationship that could compromise a fiduciary's decisions?
The rule describes it rather than listing who qualifies: a person or entity with whom the fiduciary has a relationship that could compromise or otherwise affect the decisions the fiduciary makes. It then names the transaction types it reaches, including payment for goods, services, rent, and reimbursement of expenses.
The rule's own standard is the test. Where the relationship could compromise or otherwise affect a decision the fiduciary made, the narrative must name the transaction and explain it.
I paid an estate expense out of my own pocket. How do I report it?
Advancements and reimbursements go in a separate exhibit, not in the body of the narrative alone. Each one needs a narrative explanation of its purpose, and written proof of the amount and purpose is included with the accounting.
Does prior court approval excuse the disclosure?
Yes, for a transaction the court approved before it occurred. The rule opens by making disclosure the default unless the transaction was previously approved by the court.
Are small gifts exempt?
No. The rule says all gifts, with no threshold and no exception for modest amounts. A small holiday gift from the protected person's funds is still a gift that the narrative must disclose and explain.