Annual Trust Accounting (Colorado Uniform Trust Code, C.R.S. § 15-5-813(3))

ANNUAL TRUST ACCOUNTING AND TRUSTEE'S REPORT

Pursuant to Colorado Uniform Trust Code, C.R.S. § 15-5-813(3)

I. IDENTIFICATION OF TRUST AND TRUSTEE

II. ACCOUNTING PERIOD AND REPORT TYPE

III. QUALIFIED BENEFICIARIES TO WHOM THIS REPORT IS SENT

Representatives (C.R.S. §§ 15-5-301 to 15-5-305), if any:

IV. SUMMARY OF FIDUCIARY ACCOUNT

V. SCHEDULE A — STATEMENT OF ASSETS (END OF PERIOD)

Basis for market values: ☐ Broker statement ☐ Qualified appraisal dated [__/__/____] ☐ Tax-assessed value ☐ Trustee good-faith estimate ☐ Other: [________________]

VI. SCHEDULE B — STATEMENT OF LIABILITIES (END OF PERIOD)

VII. SCHEDULE C — RECEIPTS

VIII. SCHEDULE D — DISBURSEMENTS

IX. SCHEDULE E — DISTRIBUTIONS TO BENEFICIARIES

X. SCHEDULE F — TRUSTEE AND AGENT COMPENSATION (C.R.S. § 15-5-813(3))

A. Trustee Compensation

Basis for trustee compensation under C.R.S. § 15-5-708: [________________________________]

Reimbursed expenses under C.R.S. § 15-5-709: $[__________] (itemized at Schedule D).

B. Agents Hired by Trustee

XI. SCHEDULE G — NARRATIVE OF MATERIAL ADMINISTRATION EVENTS

The following material events, decisions, and transactions occurred during the accounting period and may bear on the interests of qualified beneficiaries (provided to satisfy adequate-disclosure standard under C.R.S. § 15-5-1005(2)):

1. [________________________________]
2. [________________________________]
3. [________________________________]
4. [________________________________]
5. [________________________________]

Related-party transactions, conflicts of interest, or transactions with the trustee personally or with an affiliate (if any): [________________________________]

Significant investment changes, allocations, or rebalancing decisions: [________________________________]

Any exercise or anticipated exercise of decanting authority under the Colorado Uniform Trust Decanting Act: [________________________________]

XII. TIME TO BRING A BREACH-OF-TRUST CLAIM — C.R.S. § 15-5-1005

NOTICE TO BENEFICIARY OF TIME LIMITATIONS UNDER COLORADO LAW

YOUR RIGHT TO BRING A PROCEEDING AGAINST THE TRUSTEE FOR ANY MATTER ADEQUATELY DISCLOSED BY THIS REPORT MAY BE BARRED IF YOU DO NOT COMMENCE THE PROCEEDING WITHIN ONE (1) YEAR AFTER THE DATE THIS REPORT WAS SENT TO YOU.

Under Colorado Revised Statutes § 15-5-1005(1), a beneficiary may not commence a proceeding against a trustee for breach of trust more than ONE YEAR after the date the beneficiary (or a person who may represent and bind the beneficiary under Part 3 of Article 5) 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.

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 (C.R.S. § 15-5-1005(2)).

Your delivery date is shown in Section III next to your name. The one-year period applies to a potential breach-of-trust claim only if this report adequately discloses that claim and informs you of the time allowed to bring it. The use of this form does not establish that those conditions have been met.

If the one-year limitation under § 15-5-1005(1) does not apply, a residual three-year limitations period under § 15-5-1005(3) runs from the FIRST to occur of (a) the removal or resignation of the trustee, (b) the termination of your interest in the trust, or (c) the termination of the trust.

The limitation under § 15-5-1005 does not preclude an action to recover for fraud or misrepresentation related to this report (§ 15-5-1005(5)).

If you have questions about this report, your rights, or the limitations described above, consult independent legal counsel. You may ask the Colorado district court, or the Denver Probate Court when applicable, for relief concerning trust administration under C.R.S. §§ 15-5-201 and 15-5-203.

XIII. BENEFICIARY OBJECTION AND COURT-PETITION INFORMATION

Any qualified beneficiary who objects to all or any part of this report may:

1. Submit a written objection to the Trustee at the address in Section I, identifying the items objected to and the basis for the objection. Submission of a written objection does NOT extend the limitation period under § 15-5-1005; it preserves your concern with the Trustee for informal resolution only.

2. File a trust-administration petition in the Colorado district court, or the Denver Probate Court when applicable, under C.R.S. §§ 15-5-201 and 15-5-203. Determine county venue under § 15-5-204(1), which gives priority to a qualifying county named in the trust, then the county of registration, then the principal place of administration or the estate-administration county for a testamentary trust. The petition may seek to:

   • Compel a trustee accounting;
   • Approve or surcharge this account;
   • Remove the trustee for breach of trust (C.R.S. § 15-5-706);
   • Obtain instructions regarding the administration of the trust; OR
   • Obtain any other appropriate relief.

The applicable court is: [________________________________], Colorado.

XIV. RECEIPT AND RELEASE (OPTIONAL — C.R.S. § 15-5-1009)

The undersigned qualified beneficiary, having received and reviewed this Annual Trust Accounting and Trustee's Report for the period set forth in Section II, and being fully informed of the matters disclosed herein, hereby:

1. Acknowledges receipt of this report on [__/__/____];

2. Approves and ratifies the acts, transactions, and accounts of the Trustee as set forth in this report;

3. Releases the Trustee from breach-of-trust claims arising from the specifically identified matters [LIST MATTERS RELEASED], subject to C.R.S. § 15-5-1009(1)'s limits for improper inducement or a beneficiary's lack of knowledge of rights or material facts;

4. Acknowledges that this Receipt and Release is voluntary, that the beneficiary has had the opportunity to consult with independent counsel, and that no improper conduct by the Trustee induced its execution.

XV. TRUSTEE VERIFICATION

I, the undersigned Trustee of the trust identified in Section I, confirm that:

1. I have personal knowledge of the matters set forth in this Annual Trust Accounting and Trustee's Report;

2. The schedules and statements contained herein are true, correct, and complete to the best of my knowledge and belief, and fairly present the assets, liabilities, receipts, disbursements, distributions, and compensation of the trust for the accounting period stated in Section II;

3. This report is sent to the recipients identified in Section III. Whether it starts the one-year period for a particular claim depends on the disclosure and notice requirements of C.R.S. § 15-5-1005(1)-(2).

XVI. PROOF OF SERVICE

The undersigned declares:

1. I sent or delivered the report as recorded below.
2. On [__/__/____], I served the foregoing ANNUAL TRUST ACCOUNTING AND TRUSTEE'S REPORT on each qualified beneficiary (and representative under C.R.S. §§ 15-5-301 to 15-5-305) listed in Section III, by the method shown for that recipient.
3. For service by mail, I placed a true and complete copy of the report in a sealed envelope, postage fully prepaid, addressed to the recipient at the address shown, and deposited the envelope with the United States Postal Service via Certified Mail, Return Receipt Requested. Article numbers and return-receipt evidence are retained in the trust file.
4. For service by personal delivery or by consented electronic transmission, the manner of service is described in the attached service log.

I confirm that this delivery record is accurate to the best of my knowledge.

SOURCES AND REFERENCES

• C.R.S. § 15-5-813 — Duty to Inform and Report
• C.R.S. § 15-5-813(3) — Annual Trustee Report (required content)
• C.R.S. § 15-5-1005 — Limitation of Actions Against Trustee
• C.R.S. § 15-5-1005(2) — Adequate-Disclosure Standard
• C.R.S. § 15-5-1005(3) — Three-Year Residual Limitations Period
• C.R.S. § 15-5-1005(5) — Fraud / Misrepresentation Carve-Out
• C.R.S. § 15-5-1009 — Beneficiary Consent, Release, or Ratification
• C.R.S. § 15-5-105 — Mandatory Rules
• C.R.S. § 15-5-708 — Trustee Compensation
• C.R.S. § 15-5-709 — Reimbursement of Trustee Expenses
• C.R.S. § 15-5-201 — Role of Court in Trust Administration
• C.R.S. § 15-5-203 — Subject Matter Jurisdiction
• C.R.S. § 15-5-204 — Venue
• C.R.S. §§ 15-5-301 to 15-5-305 — Representation