Annual Trust Accounting Requirements in Montana

At a glance

Requirements one by one

The trust instrument controls whether the report duty applies

Mont. Code Ann. § 72-38-813 opens by requiring compliance unless the trust instrument specifically limits or waives a requirement in the section. When the default applies, distributees and permissible distributees receive annual and termination reports automatically. Other qualified beneficiaries receive them by requesting one.

Mont. Code Ann. § 72-38-103(16) defines qualified beneficiaries through current, next-line, and trust-termination distribution interests. If a vacancy occurs and no cotrustee remains, the former trustee reports to all qualified beneficiaries. A personal representative, conservator, or guardian may report for a deceased or incapacitated trustee.

The annual period follows tax reporting

The report is due at least annually on a calendar-year or fiscal-year basis consistent with tax reporting requirements, and again at trust termination. The financial-asset snapshot is taken as of the last business day of that calendar year or fiscal period.

The October 1, 2013 cutoff in § 72-38-813(5) applies only to the acceptance and irrevocability notices in subsections (2)(b) and (2)(c). It does not name subsection (3)'s annual, termination, vacancy, or tax-return duties.

Market-value duties depend on the asset

The base report covers trust property, liabilities, receipts and disbursements, the source and amount of trustee compensation, an asset list, and feasible market values. For cash, cash equivalents, publicly traded securities, investments, and other investment property, § 72-38-813(3) calls for period-end fair market value when readily ascertainable or traded on an established public market.

An appraisal or value statement need not be required for real estate, a closely held business, or other property when its value is not readily ascertainable or publicly traded. The section does not prescribe principal-and-income allocations, realized gain-and-loss schedules, agent compensation, reconciliation, or a final distribution plan.

Tax returns are a separate request right

A qualified beneficiary may request copies of applicable income, estate, or transfer tax returns relevant to trust administration. That is separate from the automatic annual report and does not turn the report itself into a tax return.

Section 813 also requires reasonable administration information and portions of the trust instrument that describe or affect a requesting beneficiary's interest, subject to the instrument's specific limitation or waiver.

Revocable-trust duties run to the settlor

Mont. Code Ann. § 72-38-603(2) makes beneficiary rights subject to the settlor's control while the trust is revocable and makes trustee duties, including notice, exclusive to the settlor. A withdrawal-power holder has settlor rights over the property subject to that power while it is exercisable.

Delivery focuses on likely receipt

Mont. Code Ann. § 72-38-109 permits first-class mail, personal delivery, delivery to the last-known residence or business, and a properly directed electronic message. The method must be reasonably suitable and likely to result in receipt. Unknown or unascertainable recipients are excused. The report statute directs sending to recipients and prescribes no routine court filing.

Waiver and limitation notices do different work

A qualified beneficiary may waive reports or other information and later withdraw the waiver for future reports and information. That beneficiary waiver is separate from the trust instrument's power to specifically limit or waive a § 72-38-813 requirement.

Mont. Code Ann. § 72-38-1005 starts a three-year breach-of-trust period only when the report adequately discloses the potential claim and informs the beneficiary of the time allowed to commence a proceeding. If that route does not apply, the five-year period runs from the first of trustee removal, resignation, or death; termination of the beneficiary's interest; or trust termination.

Mont. Code Ann. § 72-38-111 permits interested persons to approve a report or accounting and resolve trustee liability through a qualifying nonjudicial settlement agreement. Mont. Code Ann. § 72-38-1009 separately recognizes informed consent, release, or ratification, subject to improper-conduct and missing-knowledge exceptions.

Courts can compel an account and award equitable costs

Mont. Code Ann. § 72-38-1001 authorizes compelled duties or an account, redress, a special fiduciary, suspension or removal, reduced or denied compensation, tracing, and other appropriate relief. Mont. Code Ann. § 72-38-1004 permits costs and reasonable attorney fees as justice and equity require. Section 813 creates no separate fixed fine or automatic discharge.

What trips people up

• The reporting year is not free-form. It follows a calendar year or a fiscal year consistent with tax reporting requirements.
• Hard-to-value assets have an express exception. Real estate and closely held businesses do not automatically require an appraisal or value statement.
• Tax returns are supplied on request. They are not automatically attached to every annual report.
• The claim-shortening period is three years, not one. Montana also preserves a separate five-year fallback when the report route does not apply.

Common questions

Must every qualified beneficiary automatically receive the annual report?

No. Distributees and permissible distributees are automatic recipients. Other qualified beneficiaries receive the report by requesting it.

Does the trustee have to appraise every parcel of real estate?

Not under § 72-38-813(3) when fair market value is not readily ascertainable and the property is not traded on an established public market.

Does the report need a signature, notarization, or proof of service?

The cited report and delivery provisions prescribe none of those formalities. The delivery method must instead be reasonably suitable and likely to result in receipt.

Statutes and sources

• Mont. Code Ann. §§ 72-38-103, -109, -111, -603, and -813 — beneficiary class, delivery, settlement, revocable-settlor control, report periods, recipients, contents, valuation limits, tax returns, cutoff, and waiver. Montana Legislature (accessed 2026-08-10).
• Mont. Code Ann. §§ 72-38-1001, -1004, -1005, and -1009 — remedies, fees, report-linked limitation periods, and consent/release rules. Montana Legislature (accessed 2026-08-10).