Annual Trust Accounting (Arizona)

ANNUAL TRUSTEE'S REPORT AND ACCOUNTING

Pursuant to A.R.S. § 14-10813(C)

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 (§ 14-10813(C))

10. Schedule F — Liabilities at Period End

11. Limitation Notice — A.R.S. § 14-11005(A)

IMPORTANT — READ CAREFULLY. YOUR RIGHTS MAY BE LIMITED.

You are hereby provided with this Limitation Notice pursuant to A.R.S. § 14-11005(A). Under Arizona law, a beneficiary may not commence a proceeding against a 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:

(a) adequately disclosed the existence of a potential claim for breach of trust; and

(b) informed the beneficiary of the time allowed for commencing a proceeding.

This Annual Trustee's Report is intended to adequately disclose all matters set forth in this report, including any potential claims arising from the transactions and balances reported herein. If you wish to object to or commence a proceeding regarding any matter disclosed in this report, you MUST do so within ONE (1) YEAR from the date this report is sent to you.

If a report adequately disclosing a potential claim and containing this Limitation Notice is not sent, A.R.S. § 14-11005(B) imposes a residual limitations period of TWO (2) YEARS, running from the first to occur of (i) the removal, resignation, or death of the Trustee; (ii) the termination of the beneficiary's interest in the Trust; or (iii) the termination of the Trust.

Date Report Sent: [__/__/____]
One-Year Limitations Period Expires: [__/__/____]

12. Beneficiary Objection Mechanism

Any beneficiary objecting to any matter set forth in this report may, within the limitations period stated in Section 11, do any of the following:

☐ Serve a written objection on the Trustee at the address in Section 2, specifying the item objected to and the grounds for objection;

☐ Request additional information or supporting documentation from the Trustee;

☐ Commence a judicial proceeding under A.R.S. § 14-10201 et seq. in the Superior Court for the county of trust administration;

☐ Demand a formal judicial accounting.

Failure to object within the limitations period may bar later claims under A.R.S. § 14-11005 and may constitute consent, release, or ratification under A.R.S. § 14-11009.

13. Trustee Verification

I, the undersigned Trustee, declare under penalty of perjury under the laws of the State of Arizona that I have reviewed the foregoing Annual Trustee's Report and Accounting and the attached schedules; that to the best of my knowledge and belief the receipts, disbursements, distributions, assets, liabilities, and compensation reported herein are true, correct, and complete for the accounting period stated; and that this report is delivered pursuant to A.R.S. § 14-10813(C).

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

Notary Acknowledgment

State of Arizona )
County of [__________] ) ss.

On [__/__/____] before me, the undersigned notary public, personally appeared [________________________________], proved to me on the basis of satisfactory evidence to be the person whose name is subscribed to the within instrument and acknowledged that he/she executed the same in his/her authorized capacity.

14. Schedule G — Beneficiary Receipt, Release, and Ratification

I, [________________________________], a beneficiary of the Trust identified in Section 1, hereby acknowledge that:

1. I have received the foregoing Annual Trustee's Report and Accounting for the period [__/__/____] through [__/__/____], including all schedules;

2. I have had a reasonable opportunity to review the report, request additional information, and consult with independent counsel of my choosing;

3. I approve the actions of the Trustee as disclosed in the report;

4. I release and discharge the Trustee from all liability for any act or omission occurring during the accounting period that is adequately disclosed by the report, to the extent permitted by A.R.S. § 14-11008 and § 14-11009;

5. I ratify all transactions, investments, distributions, and compensation reflected in the report;

6. I understand that this release does not extend to any liability for breach committed in bad faith or with reckless indifference to the purposes of the Trust or the interests of the beneficiaries, as such releases are unenforceable under A.R.S. § 14-11008.

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.

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

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(B): 2-year residual SOL (shorter than UTC § 1005 default of 5 years)
• A.R.S. § 14-11008 — Exculpation of Trustee (Limits)
• A.R.S. § 14-11009 — Beneficiary's Consent, Release, or Ratification
• A.R.S. § 14-10105 — Default and Mandatory Rules
• Arizona Trust Code, Laws 2008, Ch. 122 (effective January 1, 2009)