Annual Trust Accounting (Arkansas Trust Code § 28-73-813(c))

ANNUAL TRUST ACCOUNTING

Pursuant to Arkansas Code Annotated § 28-73-813(c)

I. TRUST IDENTIFICATION

II. TRUSTEE IDENTIFICATION (§ 28-73-813(b)(2))

III. BENEFICIARIES RECEIVING THIS REPORT (§ 28-73-813(c)(1))

IV. SUMMARY OF ACCOUNT

V. SCHEDULE OF RECEIPTS (§ 28-73-813(c)(1) — Receipts)

A. Income Receipts

B. Principal Receipts

VI. SCHEDULE OF DISBURSEMENTS (§ 28-73-813(c)(1) — Disbursements)

A. Ordinary Administration Expenses

B. Distributions to Beneficiaries

C. Taxes

VII. STARTING STATEMENT OF ASSETS (As of [__/__/____])

VIII. ENDING STATEMENT OF ASSETS — TRUST PROPERTY (§ 28-73-813(c)(1) — Trust Property; Listing with Market Values) (As of [__/__/____])

IX. STATEMENT OF LIABILITIES (§ 28-73-813(c)(1) — Liabilities)

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

X. TRUSTEE COMPENSATION AND AGENTS (§ 28-73-813(c)(1) — Source and Amount of Trustee Compensation)

A. Trustee Compensation

B. Agents Compensated From Trust Funds

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:

[________________________________________________________________]

[________________________________________________________________]

XI. NOTICE OF RIGHT TO PETITION CIRCUIT COURT (PROBATE DIVISION)

You are notified that, as a recipient of this report, you may petition the Circuit Court (Probate Division) for the county in which the principal place of administration of the Trust is located to obtain a judicial review of this report and of the acts of the Trustee, including (without limitation) proceedings to:

• compel the Trustee to account or to provide information;
• approve or disapprove a Trustee's report or accounting;
• review and adjust the Trustee's compensation;
• remove the Trustee for breach of trust under Ark. Code Ann. § 28-73-706;
• surcharge the Trustee for breach of trust under Ark. Code Ann. § 28-73-1002; and
• otherwise enforce the terms of the Trust under Ark. Code Ann. § 28-73-201.

The Circuit Court of [____________________] County, Arkansas, Probate Division, has jurisdiction.

XII. STATUTORY LIMITATION NOTICE — ARK. CODE ANN. § 28-73-1005

IMPORTANT — TIME LIMIT FOR ASSERTING CLAIMS AGAINST THE TRUSTEE

Pursuant to Arkansas Code Annotated § 28-73-1005(a), a beneficiary may not commence a proceeding against the Trustee for breach of trust more than ONE (1) YEAR 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 and informed the beneficiary of the time allowed for commencing a proceeding.

This report is intended to adequately disclose the matters set forth above. Any potential claim for breach of trust that is based on, or that the beneficiary should have inquired into from, the information disclosed in this report must be commenced not later than ONE (1) YEAR from the date this report is sent to the beneficiary or the beneficiary's representative.

If the foregoing one-year period does not apply, any judicial proceeding by a beneficiary against the Trustee for breach of trust must be commenced within FIVE (5) 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. See Ark. Code Ann. § 28-73-1005(c).

XIII. BENEFICIARY OBJECTION MECHANISM

A beneficiary who has questions about or objections to any item in this report is encouraged (but not required) to deliver a written objection to the Trustee within [____] days of receipt of this report, at the address in Section II. This informal step does not extend, shorten, or substitute for the statutory limitations periods stated in Section XII. A beneficiary retains the right to petition the Circuit Court (Probate Division) at any time within the applicable limitation period.

Trustee Contact for Objections / Inquiries:

XIV. TRUSTEE VERIFICATION AND SIGNATURE

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

1. I have reviewed the foregoing Annual Trust Accounting 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, Trustee compensation (including source), and agent compensation (including any related-party agent) for the accounting period stated above are disclosed; and
4. This report is furnished pursuant to Arkansas Code Annotated § 28-73-813(c).

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

Trustee Signature: [________________________________]

Print Name: [________________________________]

Capacity: [________________________________]

XV. BENEFICIARY RECEIPT, APPROVAL, AND RELEASE (§ 28-73-1009) — OPTIONAL

☐ Not Applicable — no Receipt and Release is being solicited with this report.

☐ Optional — Beneficiary Receipt, Approval, and Release:

The undersigned beneficiary acknowledges receipt of the foregoing Annual Trust Accounting for the period from [__/__/____] through [__/__/____]; has had a reasonable opportunity to review it, to inquire of the Trustee, and to consult with independent counsel; understands the rights described in this report (including the right to petition the Circuit Court (Probate Division) and the limitation periods under Ark. Code Ann. § 28-73-1005); and, having been fully informed of the material facts, hereby APPROVES and RATIFIES the acts and accounts of the Trustee for the accounting period and RELEASES and DISCHARGES the Trustee from all liability for matters adequately disclosed in this report, subject to the limits of Ark. Code Ann. § 28-73-1008 (exculpation does not reach breach committed in bad faith or with reckless indifference to the trust purposes or beneficiaries' interests).

Beneficiary Signature: [________________________________]

Print Name: [________________________________]

Date: [__/__/____]

State of Arkansas, County of [____________________]

Subscribed and sworn to (or affirmed) before me this [____] day of [______________], 20[____], by [________________________________].

Notary Signature: [________________________________]

Notary Printed Name: [________________________________]

My Commission Expires: [__/__/____]

(Seal)

XVI. PROOF OF SERVICE

I, the undersigned, declare that I am over the age of 18 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 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 [____________________], Arkansas, OR by certified mail, return receipt requested, OR by personal delivery as indicated.

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

Date: [__/__/____]

Signature: [________________________________]

Print Name: [________________________________]

Address: [________________________________]

SOURCES AND REFERENCES

• Ark. Code Ann. § 28-73-103 — https://law.justia.com/codes/arkansas/title-28/subtitle-5/chapter-73/subchapter-1/section-28-73-103/.
• Ark. Code Ann. § 28-73-105 — https://law.justia.com/codes/arkansas/title-28/subtitle-5/chapter-73/subchapter-1/section-28-73-105/.
• Ark. Code Ann. § 28-73-201 — https://law.justia.com/codes/arkansas/title-28/subtitle-5/chapter-73/subchapter-2/section-28-73-201/.
• Ark. Code Ann. § 28-73-813 — https://law.justia.com/codes/arkansas/title-28/subtitle-5/chapter-73/subchapter-8/section-28-73-813/.
• Ark. Code Ann. § 28-73-1005 — https://law.justia.com/codes/arkansas/title-28/subtitle-5/chapter-73/subchapter-10/section-28-73-1005/.
• Ark. Code Ann. § 28-73-1008 — https://law.justia.com/codes/arkansas/title-28/subtitle-5/chapter-73/subchapter-10/section-28-73-1008/.
• Ark. Code Ann. § 28-73-1009 — https://law.justia.com/codes/arkansas/title-28/subtitle-5/chapter-73/subchapter-10/section-28-73-1009/.