Legal Definitions - ad computum reddendum

Ad computum reddendum is a Latin legal phrase that translates to "to render an account." It refers to a legal obligation for a person to provide a detailed and formal statement of financial transactions, activities, or stewardship to another party. This duty typically arises when one person has been entrusted with managing assets, funds, or responsibilities on behalf of someone else, and the law requires them to show how they have handled those duties.

Here are some examples illustrating this concept:

• Trustee Management: Imagine a situation where a grandparent sets up a trust fund for their grandchild, appointing a family friend as the trustee to manage the investments until the grandchild turns 25. The trust agreement, or state law, might stipulate that the trustee must provide annual financial statements to the grandchild's parents (or directly to the grandchild once they are of age) detailing all income generated, expenses incurred, and investment decisions made within the trust. This requirement for the trustee to formally report on their handling of the trust's assets is an example of the duty ad computum reddendum.

• Business Partnership Dissolution: Consider two business partners who decide to dissolve their company. One partner was primarily responsible for managing the company's finances, including all revenue, expenditures, and payroll. As part of the dissolution process, the non-managing partner has a legal right to demand a comprehensive accounting of all financial activities from the managing partner to ensure all assets are properly distributed and liabilities settled. This demand for a detailed financial report from the managing partner is an exercise of the right to compel ad computum reddendum, ensuring transparency during the winding-up of the business.

• Estate Administration: When an individual passes away, an executor is appointed to manage their estate, which involves collecting assets, paying debts, and distributing inheritances according to the will. Before the estate can be officially closed and all assets distributed, the executor is legally required to present a complete accounting to the probate court and all beneficiaries. This accounting details every asset identified, every debt paid, and every distribution made. This legal requirement for the executor to provide a full financial breakdown of the estate's management is a clear application of ad computum reddendum.