Q & A: How Do I Know if the Trustee Absconded With Assets?

I recently received this question from a reader of my blog:

I believe that my trustee absconded with trust assets.  I am aware of accounts that were titled in the name of the trust that never appeared in the trustee’s accounting.  It is possible that these accounts were re-titled or closed prior to the grantor’s death, but I suspect that the trustee simply took them for herself.

The only way to prove how these accounts were titled is to demand documentation, but I expect that the trustee will refuse to provide documentation, claiming that these accounts were non-trust assets.  Is there any procedure, short of a probate court petition, whereby beneficiary can demand production of documentation of estate assets that were (supposedly) not trust assets on the date of death?

Dear Reader:

There is a Petition to account, which is filed in the Probate Court, but you have expressly asked whether there is a way to avoid a court procedure. 

Before you file anything, you have a long shot at getting the trustee to sign a letter of authorization (LOA) permitting the beneficiary to obtain the docs directly from the institutions.  The argument would be along the lines that (s)he [trustee] should have nothing to fear if there was no hanky-panky, right?  The institutions could still refuse during the time frame the grantor was alive (but its worth a shot) and thus you are back in Probateville.

Getting a password to access online statements would also work - in the remote event that your client happens to have known Dad's password, the account numbers and so forth.  It might also be illegal, but I don't know that for a fact.  I do know you are allowed to rummage through garbage and recycling - if your client is desperate to avoid probate court (with which I can completely empathize).  Problem: smart thieves own a shredder.

The final and most gratuitous thought I had is that you could send her to her fortune teller (she can use mine - I have a referral) to find out whether her expenditure of $15K in attorneys fees to you for subpoenaing the records will yield fruitful results.  (I just say that to tick off my litigation attorney friends.  We all know that litigation is completely predictable and that justice is always served).