Annual Trust Accounting Requirements in Oregon

At a glance

Requirements one by one

Annual recipients and requested recipients are different groups

Or. Rev. Stat. § 130.710(3) sends the annual and termination report to every permissible distributee of trust income or principal. It also sends the report to other qualified beneficiaries who request it. Or. Rev. Stat. § 130.010 defines a qualified beneficiary more broadly to include the current distribution class, the next-line distribution class, and those who would take if the trust ended. Or. Rev. Stat. § 130.910 generally applies Chapter 130 to trusts created before, on, or after January 1, 2006, but does not affect an act done before that date or a proceeding already commenced before it.

The report must list trust property and liabilities, show asset market values when feasible, reflect all receipts and disbursements, and disclose the source and amount of trustee compensation. The section does not expressly require carrying values, realized gains and losses, principal-and-income allocations, agent compensation, a reconciliation, or a distribution plan.

A vacancy report requires a successor or court demand

Under § 130.710(3)(b), a former trustee reports from the prior report through the vacancy only when no cotrustee remains and the successor trustee or court requires the report. Or. Rev. Stat. § 130.630(3) confirms that trigger and requires the trust to pay reasonable preparation compensation and reasonable fees and costs for preparing and distributing the report.

Termination is different. Section 130.020(5) requires every report containing termination information to reach the qualified beneficiaries as well as any person designated by the settlor under the special recipient rule.

Trust control has mandatory and written-waiver limits

Or. Rev. Stat. § 130.020 makes trust terms the ordinary default, but preserves the irrevocable-trust duties to give specified notices and respond to qualified- beneficiary requests, subject to the section's settlor waiver and designated- recipient rules. A settlor may use the trust instrument or another writing delivered to the trustee to modify reporting while the settlor is alive and financially capable, or while a qualified-beneficiary spouse is alive and financially capable, or may designate a good-faith recipient to protect the qualified beneficiaries.

A qualified beneficiary may separately waive a report and withdraw that waiver for future reports under § 130.710(4). While a revocable settlor is alive, Or. Rev. Stat. § 130.510(1) makes the duties exclusive to the settlor and denies other beneficiaries notice, information, and reports.

Delivery and the one-year claim period do not use the same test

Or. Rev. Stat. § 130.035 generally permits any reasonably suitable method likely to result in receipt, including first-class mail, personal delivery, last-known- address delivery, and properly directed email. Or. Rev. Stat. § 130.820(2) is narrower when the trustee seeks the one-year claim period: the report must be sent by certified or regular mail, adequately disclose the potential claim, inform the recipient of the time to commence a proceeding, and attach a copy of § 130.820.

If that special rule does not apply, § 130.820(1) uses six years from actual or constructive discovery. Its remaining fallback is 10 years from the act or omission or two years after termination of a fiduciary account established under the trust, whichever is later.

Settlement and court remedies remain separate

Or. Rev. Stat. § 130.045 permits interested persons to approve a trustee's report or accounting by nonjudicial settlement if the agreement satisfies the material- purpose and court-approvability limits. Filing is optional; an unfiled agreement binds its parties, while a filed agreement follows the section's notice, objection, and approval process. A beneficiary consent, release, or ratification under Or. Rev. Stat. § 130.840 does not protect the trustee if induced by misconduct or given without knowledge of rights or material facts.

For breach, Or. Rev. Stat. § 130.800 permits compelled performance or accounting, an injunction, monetary or property redress, a special fiduciary, suspension or removal, reduced compensation, and other appropriate relief. Or. Rev. Stat. § 130.815 permits, but does not require, an award of costs, expenses, and reasonable attorney fees to any party from another party or the trust.

What trips people up

The one-year period is subsection (2) of § 130.820, not subsection (1), and a generic annual accounting does not start it automatically. Also preserve two recipient exceptions in § 130.710: when a financially capable surviving spouse is the only permissible distributee and all other qualified beneficiaries are that spouse's descendants, reporting goes only to the spouse; a beneficiary whose only interest is a specific item or sum may wait six months after irrevocability for notice and reports.

Common questions

Does every qualified beneficiary automatically receive the annual report?

No. Permissible distributees receive it automatically. Other qualified beneficiaries receive it when they request it, subject to the statutory routing and waiver rules.

Must the annual report be filed with a court?

No. The ordinary report is sent to recipients. A nonjudicial settlement agreement approving an accounting may be filed, but filing is a separate optional route.

Does email start the one-year claim period?

Section 130.035 permits properly directed email for ordinary delivery, but § 130.820(2) specifies certified or regular mail for the one-year period.

Statutes and sources

• Or. Rev. Stat. §§ 130.005, 130.010, 130.020, 130.510, and 130.910 — scope, recipients, trust control, revocable trusts, and application dates. Oregon Legislative Assembly (accessed 2026-08-10).
• Or. Rev. Stat. §§ 130.035, 130.045, 130.630, and 130.710 — delivery, settlement, former-trustee reports, annual reports, contents, and exceptions. Oregon Legislative Assembly (accessed 2026-08-10).
• Or. Rev. Stat. §§ 130.800, 130.815, 130.820, and 130.840 — remedies, fees, limitation periods, and consent or release. Oregon Legislative Assembly (accessed 2026-08-10).