Annual Trust Accounting / Trustee's Report (Alabama Uniform Trust Code § 19-3B-813(c))

ANNUAL TRUST ACCOUNTING — TRUSTEE'S REPORT

Pursuant to Alabama Code § 19-3B-813(c)

I. TRUST IDENTIFICATION

II. TRUSTEE IDENTIFICATION

III. BENEFICIARIES RECEIVING THIS REPORT (§ 19-3B-813(c))

IV. SUMMARY OF ACCOUNT

V. SCHEDULE A — STARTING STATEMENT OF ASSETS (As of [__/__/____])

VI. SCHEDULE B — ENDING STATEMENT OF ASSETS (§ 19-3B-813(c)) (As of [__/__/____])

VII. SCHEDULE C — LIABILITIES (§ 19-3B-813(c))

☐ The Trust has no outstanding liabilities as of the end of the accounting period.

VIII. SCHEDULE D — RECEIPTS (§ 19-3B-813(c))

A. Income Receipts

B. Principal Receipts

IX. SCHEDULE E — DISBURSEMENTS (§ 19-3B-813(c))

A. Ordinary Administration Expenses

B. Taxes

X. SCHEDULE F — DISTRIBUTIONS TO BENEFICIARIES (§ 19-3B-813(c))

XI. SCHEDULE G — TRUSTEE COMPENSATION AND AGENT COMPENSATION

A. Trustee Compensation (§ 19-3B-813(c) — "the source and amount of the trustee's compensation")

B. Agents Hired by Trustee (Standard Fiduciary Accounting Disclosure)

C. Related-Party Transactions

☐ The Trustee did not engage in any transactions during the accounting period with the Trustee personally, with any entity in which the Trustee holds a beneficial interest, or with any agent related to the Trustee, other than as fully disclosed above.

☐ The following related-party transactions occurred during the accounting period and are fully disclosed for the beneficiaries' review:

[____________________________________________________________]

[____________________________________________________________]

XII. STATUTORY LIMITATION NOTICE — TWO-YEAR PERIOD (§ 19-3B-1005)

NOTICE OF TWO-YEAR LIMITATION PERIOD UNDER ALA. CODE § 19-3B-1005

You are advised that under Alabama Code § 19-3B-1005(a), a beneficiary may not commence a proceeding against a trustee for breach of trust more than TWO (2) YEARS after the date the beneficiary or a representative of the beneficiary was sent a report that adequately disclosed the existence of a potential claim for breach of trust. Under § 19-3B-1005(b), a report adequately discloses the existence of a potential claim if it provides sufficient information so that the beneficiary or representative knows of the potential claim or should have inquired into its existence.

A two-year period runs from the sending of a report only if that report adequately discloses the existence of a potential breach-of-trust claim under § 19-3B-1005(a)–(b). This report does not declare that every potential claim has been adequately disclosed.

If you have any questions regarding any item in this report, you are urged to contact the Trustee at the address in Section II within this two-year period and to consult independent legal counsel of your choosing.

XIII. RESIDUAL LIMITATION PERIOD (§ 19-3B-1005(c))

If the report-based two-year period in Section XII does not apply, then under Ala. Code § 19-3B-1005(c) a judicial proceeding by a beneficiary against a trustee for breach of trust must be commenced within TWO (2) YEARS after the first to occur of:

(1) The removal, resignation, or death of the trustee;

(2) The termination of the beneficiary's interest in the trust; or

(3) The termination of the trust.

XIV. BENEFICIARY OBJECTION MECHANISM

A beneficiary who has questions or objections to any item in this report is encouraged (but not required) to contact the Trustee in writing within [____] days of receipt at the address in Section II. Informal contact does not extend, shorten, or substitute for the statutory limitations periods stated in Sections XII and XIII.

A beneficiary may also seek judicial relief in the appropriate Alabama court under Ala. Code § 19-3B-203:

☐ Testamentary Trust — Petition may be filed in the Probate Court of [____________________] County, Alabama (concurrent with the Circuit Court).

☐ Inter Vivos Trust — Petition may be filed in the Circuit Court of [____________________] County, Alabama.

Trustee Contact for Objections / Inquiries:

XV. OPTIONAL — BENEFICIARY RECEIPT, RELEASE, AND CONSENT (§ 19-3B-1009)

I, [________________________________], a beneficiary of the above-identified Trust, hereby:

1. ACKNOWLEDGE receipt of the foregoing Annual Trust Accounting and Trustee's Report for the period [__/__/____] through [__/__/____];

2. CONFIRM that I have had a reasonable opportunity to examine the report and all schedules, and have had an opportunity to consult independent counsel of my choosing;

3. APPROVE AND RATIFY the acts and transactions of the Trustee disclosed in the report, including the trustee compensation and agent compensation set forth in Section XI; and

4. RELEASE AND DISCHARGE the Trustee, individually and in any fiduciary capacity, from any and all claims, demands, causes of action, and liabilities arising out of, or based on facts disclosed in, the report and its schedules, subject to the limitations of Ala. Code §§ 19-3B-1008 and 19-3B-1009.

Beneficiary Signature: [________________________________]

Print Name: [________________________________]

Date: [__/__/____]

STATE OF ALABAMA )
COUNTY OF [____________] )

Sworn to and subscribed before me this [____] day of [____________], 20[____].

Notary Public: [________________________________]

My Commission Expires: [__/__/____]

(NOTARY SEAL)

XVI. TRUSTEE VERIFICATION AND SIGNATURE

I, the undersigned Trustee, declare under penalty of perjury under the laws of the State of Alabama:

1. I have reviewed the foregoing Annual Trust Accounting and Trustee's Report and each schedule attached;

2. The information set forth is true, correct, and complete to the best of my knowledge, based on the books, records, and supporting documentation of the Trust;

3. All material trust property, liabilities, receipts, disbursements, distributions, trustee compensation, and agent compensation (including any related-party agents) for the accounting period stated above are disclosed;

4. This report is furnished pursuant to Ala. Code § 19-3B-813(c). Whether it adequately discloses the existence of any potential breach-of-trust claim for purposes of § 19-3B-1005 depends on the information actually supplied.

Executed on [__/__/____] at [____________________], Alabama.

Trustee Signature: [________________________________]

Print Name: [________________________________]

Capacity: [________________________________]

STATE OF ALABAMA )
COUNTY OF [____________] )

Sworn to and subscribed before me this [____] day of [____________], 20[____].

Notary Public: [________________________________]

My Commission Expires: [__/__/____]

(NOTARY SEAL)

XVII. PROOF OF SERVICE

I, the undersigned, declare that I am over the age of 19 years and not a party to this matter. My business or residence address is set forth below. On [__/__/____], I served the foregoing ANNUAL TRUST ACCOUNTING — TRUSTEE'S REPORT on each beneficiary identified in Section III by placing a true copy in a sealed envelope addressed to each such beneficiary at the address set forth in Section III, with postage thereon fully prepaid, and depositing the envelope in the United States Mail at [____________________], Alabama, OR by personal delivery as indicated.

I declare under penalty of perjury under the laws of the State of Alabama that the foregoing is true and correct.

Signature: [________________________________]

Print Name: [________________________________]

Address: [________________________________]

SOURCES AND REFERENCES

• Ala. Code § 19-3B-105 (Default and Mandatory Rules) — https://law.justia.com/codes/alabama/title-19/chapter-3b/section-19-3b-105/.
• Ala. Code § 19-3B-203 (Subject Matter Jurisdiction) — https://law.justia.com/codes/alabama/title-19/chapter-3b/section-19-3b-203/.
• Ala. Code § 19-3B-813 (Duty to Inform and Report) — https://law.justia.com/codes/alabama/title-19/chapter-3b/section-19-3b-813/.
• Ala. Code § 19-3B-1005 (Limitation of Action Against Trustee) — https://law.justia.com/codes/alabama/title-19/chapter-3b/section-19-3b-1005/.
• Ala. Code § 19-3B-1008 (Exculpation of Trustee) — https://law.justia.com/codes/alabama/title-19/chapter-3b/section-19-3b-1008/.
• Ala. Code § 19-3B-1009 (Beneficiary's Consent, Release, or Ratification) — https://law.justia.com/codes/alabama/title-19/chapter-3b/section-19-3b-1009/.
• Alabama Legislature, Code of Alabama 1975 (online) — https://alison.legislature.state.al.us/code-of-alabama.