Legal Definitions - ante redditas rationes

ante redditas rationes is a Latin legal phrase primarily used in Scots law, which translates to "before accounts are rendered." This principle dictates that in certain situations, a party who has managed funds or assets for another must provide a full and clear financial accounting of their management *before* they can pursue a claim or take a specific legal action against that party. It ensures transparency and that all financial obligations and entitlements are clear and settled before further steps are taken.

Here are some examples illustrating this principle:

• Trustee and Beneficiary: Imagine a trustee who manages a substantial investment portfolio for a young adult beneficiary. During their management, the trustee incurs various legitimate administrative expenses, such as legal fees for estate planning or investment advisory costs. The trustee cannot initiate a lawsuit against the beneficiary to recover these expenses until they have first presented a comprehensive and detailed accounting of all income generated by the portfolio, all expenditures made, and the current value of the trust estate. This ensures the beneficiary has a complete financial picture before being asked to settle any claims.

  This illustrates "ante redditas rationes" because the trustee must provide the "accounts rendered" (the detailed financial statement) *before* (ante) seeking reimbursement or taking legal action against the beneficiary.

• Business Partners: Consider two individuals who were partners in a small business that has now dissolved. One partner claims that the other owes them a significant sum for personal loans made to the business over several years. The partner claiming the debt cannot proceed with a lawsuit to recover these alleged loans until a comprehensive final accounting of all business assets, liabilities, profits, and losses has been completed and formally presented to the other partner. This ensures all financial aspects of the partnership are clear and agreed upon.

  Here, the final business accounts must be "rendered" *before* (ante) one partner can sue the other for specific debts related to the partnership's operations.

• Executor of an Estate: An executor is responsible for managing the estate of a deceased person, which involves paying debts, managing assets, and distributing inheritances to beneficiaries. The executor has paid some minor estate expenses, such as utility bills for the deceased's home, out of their own personal funds. The executor cannot demand reimbursement from the estate's beneficiaries for these personal outlays until they have provided a complete and transparent accounting of the entire estate, detailing all assets, debts, income, and expenditures, showing precisely how the estate funds were managed and distributed.

  This demonstrates "ante redditas rationes" because the executor must provide the full estate "accounts rendered" *before* (ante) seeking personal reimbursement from the beneficiaries.