Annual Trust Accounting (Arizona)

ANNUAL TRUSTEE'S REPORT AND ACCOUNTING

Pursuant to A.R.S. § 14-10813(C)

Before delivery: Check the trust terms and any waiver under §§ 14-10105 and 14-10813(D), and identify who receives a report under § 14-10813(C): distributees and permissible distributees receive routine annual and termination reports; other beneficiaries receive a report on request. While a trust is revocable by the settlor, § 14-10603(A) controls trustee duties. A beneficiary whose specified distribution has already been satisfied does not qualify solely on that basis, subject to § 14-10813(F)'s acceptance-notice exception.

1. Trust Identification

2. Trustee(s) of Record

3. Beneficiaries Receiving This Report

4. Summary of Account (§ 14-10813(C) Required Disclosures)

5. Schedule A — Assets on Hand at Period End

6. Schedule B — Receipts

7. Schedule C — Disbursements

8. Schedule D — Distributions to Beneficiaries

9. Schedule E — Compensation Paid (§ 14-10813(C))

9.1 Trustee Compensation

9.2 Compensation Paid to Agents (Supplemental Detail)

10. Schedule F — Liabilities at Period End

11. Information on Breach-of-Trust Claim Limits — A.R.S. § 14-11005

Under A.R.S. § 14-11005(A), a beneficiary may not commence a breach-of-trust proceeding more than one year after a report was sent to the beneficiary or representative if the report adequately disclosed a potential claim and informed the recipient of the time allowed to sue. Adequate disclosure depends on what the report reveals about a particular potential claim under subsection B. This report does not declare that every transaction is adequately disclosed or that one year applies to every possible claim.

If subsection A does not apply, § 14-11005(C) provides a two-year period after the first of the trustee's removal, resignation, or death; termination of the beneficiary's interest; or termination of the trust. Consult counsel promptly about any concern and the period applicable to it.

Date Report Sent: [__/__/____]

12. Beneficiary Objection Mechanism

To raise a concern about this report, a beneficiary may:

☐ Send a written question or objection to the Trustee at the address in Section 2, identifying the item and concern;

☐ Request additional information or supporting documentation from the Trustee;

☐ Seek advice about an appropriate judicial proceeding under A.R.S. § 14-10201;

☐ Seek advice about requesting a court-ordered accounting.

A written objection alone may not start a judicial proceeding or preserve a claim. Silence or receipt of a report alone does not establish consent, release, or ratification under § 14-11009; that section requires consent to the conduct, release of liability, or ratification of the transaction and recognizes improper-conduct and lack-of-knowledge exceptions.

13. Trustee Verification

I, the undersigned Trustee, confirm that I have reviewed this Annual Trustee's Report and its schedules and that, to the best of my knowledge, the entries are accurate and complete for the accounting period stated.

Executed at [City], Arizona, on [__/__/____].

14. Optional Beneficiary Receipt

I, [________________________________], acknowledge receipt of this Annual Trustee's Report and Accounting for the period [__/__/____] through [__/__/____], including the schedules marked as attached. My signature acknowledges receipt only; it does not approve transactions or consent to, release, or ratify any conduct under A.R.S. § 14-11009. Signing this receipt is optional and is not a condition of receiving the report.

Beneficiary Signature: [________________________________]

Printed Name: [________________________________]

Date: [__/__/____]

15. Proof of Delivery

I, [________________________________], declare that on [__/__/____], I caused a true and correct copy of this Annual Trustee's Report and Accounting (with all schedules and the Limitation Notice in Section 11) to be delivered to each beneficiary listed in Section 3 by the method indicated.

Signature: [________________________________]
Printed Name: [________________________________]
Date: [__/__/____]

Sources and References

• A.R.S. § 14-10813(C) — Annual Trustee's Report (content and timing)
• A.R.S. § 14-10810 — Recordkeeping and Identification of Trust Property
• A.R.S. § 14-11005 — Limitations on Actions Against Trustee
• § 14-11005(A): 1-year SOL upon adequate report + limitation notice
• § 14-11005(C): 2-year period if subsection A does not apply
• A.R.S. § 14-11009 — Beneficiary's Consent, Release, or Ratification
• A.R.S. § 14-10105 — Default and Mandatory Rules
• A.R.S. § 14-10603 — Settlor's powers and powers of withdrawal
• A.R.S. § 14-10201 — Court's role in administration