Annual Trust Accounting (California Probate Code §§ 16062-16063)

ANNUAL ACCOUNTING BY TRUSTEE

Pursuant to California Probate Code §§ 16062-16063

I. TRUST IDENTIFICATION

II. TRUSTEE IDENTIFICATION

III. BENEFICIARIES RECEIVING THIS ACCOUNT (§ 16062)

IV. SUMMARY OF ACCOUNT

V. SCHEDULE OF RECEIPTS (§ 16063(a)(1))

A. Income Receipts

B. Principal Receipts

VI. SCHEDULE OF DISBURSEMENTS (§ 16063(a)(1))

A. Ordinary Administration Expenses

B. Distributions to Beneficiaries

C. Taxes

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

VIII. ENDING STATEMENT OF ASSETS (§ 16063(a)(2)) (As of [__/__/____])

IX. STATEMENT OF LIABILITIES (§ 16063(a)(2))

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

X. TRUSTEE COMPENSATION AND AGENTS HIRED

A. Trustee Compensation (§ 16063(a)(3))

B. Agents Hired by Trustee (§ 16063(a)(4))

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. STATUTORY WARNING — THREE-YEAR LIMITATION ON CLAIMS (§ 16063(a)(6); § 16460)

Claims against the trustee for breach of trust may not be made after the expiration of three years from the date the beneficiary receives an account or report disclosing facts giving rise to the claim.

XII. OPTIONAL — 180-DAY OBJECTION PERIOD WARNING (§ 16461(c))

☐ Not Applicable — the Trust does not invoke Probate Code § 16461(c).

☐ Applicable — the Trust invokes Probate Code § 16461(c). The following NOTICE TO BENEFICIARIES is provided:

NOTICE TO BENEFICIARIES

YOU HAVE [180 DAYS / the period specified in the trust instrument, whichever is longer] FROM YOUR RECEIPT OF THIS ACCOUNT OR REPORT TO MAKE AN OBJECTION TO ANY ITEM SET FORTH IN THIS ACCOUNT OR REPORT. ANY OBJECTION YOU MAKE MUST BE IN WRITING; IT MUST BE DELIVERED TO THE TRUSTEE WITHIN THE PERIOD STATED ABOVE; AND IT MUST STATE YOUR OBJECTION. YOUR FAILURE TO DELIVER A WRITTEN OBJECTION TO THE TRUSTEE WITHIN THE PERIOD STATED ABOVE WILL PERMANENTLY PREVENT YOU FROM LATER ASSERTING THIS OBJECTION AGAINST THE TRUSTEE. IF YOU DO MAKE AN OBJECTION TO THE TRUSTEE, THE THREE-YEAR PERIOD PROVIDED IN SECTION 16460 OF THE PROBATE CODE FOR COMMENCEMENT OF LITIGATION WILL APPLY TO CLAIMS BASED ON YOUR OBJECTION AND WILL BEGIN TO RUN ON THE DATE THAT YOU RECEIVE THIS ACCOUNT OR REPORT.

XIII. NOTICE OF RIGHT TO PETITION FOR COURT REVIEW (§ 16063(a)(5); § 17200)

You are hereby notified that, as the recipient of this account, you may petition the California Superior Court pursuant to Probate Code § 17200 to obtain a court review of this account and of the acts of the Trustee. Petitions under § 17200(b) include, without limitation:

• § 17200(b)(5): Settling the accounts and passing upon the acts of the trustee, including the exercise of discretionary powers;
• § 17200(b)(7): Compelling the trustee to account, where the trustee has failed to submit a requested account within 60 days after written request and no account has been made within the preceding six months; and
• § 17200(b)(8): Granting powers to, or surcharging, the trustee for breach of trust.

A petition is filed in the Superior Court of the county where the principal place of administration of the Trust is located (Prob. Code § 17005).

XIV. BENEFICIARY OBJECTION MECHANISM

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

Trustee Contact for Objections / Inquiries:

XV. TRUSTEE VERIFICATION AND SIGNATURE

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

1. I have reviewed the foregoing Annual 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 receipts, disbursements, assets, liabilities, trustee compensation, and agents hired (including any related-party agents) for the accounting period stated above are disclosed; and
4. This accounting is furnished pursuant to California Probate Code §§ 16062 and 16063.

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

Trustee Signature: [________________________________]

Print Name: [________________________________]

Capacity: [________________________________]

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 ACCOUNTING BY TRUSTEE 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 [____________________], California, OR by personal delivery as indicated.

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

Date: [__/__/____]

Signature: [________________________________]

Print Name: [________________________________]

Address: [________________________________]

SOURCES AND REFERENCES

• California Probate Code § 16060 — https://leginfo.legislature.ca.gov/faces/codes_displaySection.xhtml?lawCode=PROB&sectionNum=16060.
• California Probate Code § 16062 — https://leginfo.legislature.ca.gov/faces/codes_displaySection.xhtml?lawCode=PROB&sectionNum=16062.
• California Probate Code § 16063 — https://leginfo.legislature.ca.gov/faces/codes_displaySection.xhtml?lawCode=PROB&sectionNum=16063.
• California Probate Code § 16064 — https://leginfo.legislature.ca.gov/faces/codes_displaySection.xhtml?lawCode=PROB&sectionNum=16064.
• California Probate Code § 16460 — https://leginfo.legislature.ca.gov/faces/codes_displaySection.xhtml?lawCode=PROB&sectionNum=16460.
• California Probate Code § 16461 — https://leginfo.legislature.ca.gov/faces/codes_displaySection.xhtml?lawCode=PROB&sectionNum=16461.
• California Probate Code § 17200 — https://leginfo.legislature.ca.gov/faces/codes_displaySection.xhtml?lawCode=PROB&sectionNum=17200.
• Esslinger v. Cummins, 144 Cal. App. 4th 517 (2006).