Annual Trust Accounting - Illinois

ANNUAL TRUST ACCOUNTING

State of Illinois

Accounting under the applicable Illinois Trust Code provision

Applicable accounting provision: ☐ 760 ILCS 3/813.1 (trust became irrevocable after January 1, 2020, or covered revocable trust with trustee accepting after that date, subject to § 603) ☐ 760 ILCS 3/813.2 (trust became irrevocable before January 1, 2020, or trustee of a revocable trust accepted before that date). Identify the original irrevocability date and trustee acceptance date before selecting a branch.

ARTICLE I — IDENTIFICATION AND ACCOUNTING PERIOD

Section 1.1 — Trust Identification

Section 1.2 — Accounting Period

Section 1.3 — Trustee(s)

Section 1.4 — Beneficiaries Receiving This Accounting

ARTICLE II — STATEMENT OF ASSETS AT BEGINNING OF PERIOD

Section 2.1 — Carrying Value as of [__/__/____]

Section 2.2 — Liabilities as of [__/__/____]

Section 2.3 — Net Trust Estate at Beginning of Period

ARTICLE III — RECEIPTS DURING ACCOUNTING PERIOD

Section 3.1 — Income Receipts

Section 3.2 — Principal Receipts

Sale proceeds are shown in Section 6.2 and the resulting gain or loss is included once in Section 7.3. Borrowing and asset exchanges do not create net trust value and should be recorded in the transaction records and asset/liability schedules.

ARTICLE IV — DISBURSEMENTS DURING ACCOUNTING PERIOD

Section 4.1 — Income Disbursements

Section 4.2 — Principal Disbursements

Section 4.3 — Trustee Compensation

Section 4.4 — Professional and Administrative Fees

ARTICLE V — DISTRIBUTIONS TO BENEFICIARIES

ARTICLE VI — INVESTMENT TRANSACTIONS

Section 6.1 — Purchases

Section 6.2 — Sales / Dispositions

Section 6.3 — Changes in Form

ARTICLE VII — STATEMENT OF ASSETS AT END OF PERIOD

Section 7.1 — Carrying Value as of [__/__/____]

Section 7.2 — Liabilities as of [__/__/____]

Section 7.3 — Reconciliation

Use the same valuation basis for beginning and ending assets. List payments of loan principal as a reduction of both cash and liabilities, not as operating expense. Do not count sale proceeds in both principal additions and line 5.

ARTICLE VIII — ADMINISTRATIVE DISCLOSURES

Section 8.1 — Material Changes During Period

☐ Change in trustee (specify): [________________________________]

☐ Change in trustee compensation rate or method (notice given on [__/__/____])

☐ Change in trustee contact information (notice given on [__/__/____])

☐ New qualified beneficiary identified on [__/__/____]

☐ Change in or appointment of designated representative under 760 ILCS 3/307

☐ Material litigation or claim involving the trust (specify): [________________________________]

☐ Material related-party / conflict transaction (specify): [________________________________]

☐ None.

Section 8.2 — Confidentiality Restrictions

☐ One or more trust assets are subject to confidentiality restrictions. A beneficiary requesting information about such an asset must agree to be bound by those restrictions under 760 ILCS 3/813.1(f). Affected asset(s): [________________________________].

☐ Not applicable.

ARTICLE IX — NOTICE OF POSSIBLE CLAIM PERIODS UNDER 760 ILCS 3/1005

Section 9.1 — Disclosure and Applicable Branch

The Trustee furnishes this accounting on [__/__/____]. Select the branch that applies to this Trust and trusteeship:

☐ Section 1005(a)(1): For a trust becoming irrevocable after January 1, 2020 and trustees accepting appointment after that date, a matter disclosed in writing by an accounting or other communication under §§ 813.1 and 1102 may become binding on a recipient and a person represented under Article 3 unless an action against the Trustee is instituted within two years after the information is furnished. The communication must adequately disclose a potential breach claim by giving enough information for the recipient to know of it or to inquire into it. See 760 ILCS 3/1005(a)(1).

☐ Section 1005(a)(2): For a trust that became irrevocable before January 1, 2020 or a trustee who accepted appointment before then, a current or final account may become binding on a beneficiary receiving it and the persons specified in that subsection unless an action is instituted within three years after the account is furnished. See 760 ILCS 3/1005(a)(2).

The date of a trustee's appointment and the date of irrevocability may affect the branch. This notice does not by itself establish that a disclosure is adequate or that a claim is barred.

Section 9.2 — Residual Limitations Period

Unless barred earlier under § 1005(a), 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: (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.

Section 9.3 — Fraudulent Concealment

Section 1005(c) preserves an action for fraudulent concealment within the time limit in 735 ILCS 5/13-215, which measures five years from discovery of a fraudulently concealed cause of action.

Section 9.4 — Objections

If you object to any matter disclosed in this accounting, you should:

(a) Promptly notify the trustee in writing at the address shown in Section 1.3, identifying the specific transaction or matter, the basis for the objection, and the relief requested; and

(b) Determine the applicable claim period under 760 ILCS 3/1005.

An objection to the Trustee is not a substitute for instituting an action within an applicable statutory period.

ARTICLE X — DESIGNATED REPRESENTATIVE RECEIPT (IF APPLICABLE)

Section 10.1 — Designated Representative

☐ Not applicable. This accounting is delivered directly to the qualified beneficiary or beneficiaries identified in Section 1.4.

☐ Applicable. Pursuant to 760 ILCS 3/307 and the trust instrument, this accounting is delivered to the following designated representative on behalf of the represented qualified beneficiary:

Section 10.2 — Acknowledgment

The designated representative shall act within the authority granted by the Trust instrument and 760 ILCS 3/307. Delivery to a representative is recorded in Section 1.4; this section does not constitute a release of the Trustee.

ARTICLE XI — WAIVER AND ELECTION OF FUTURE ACCOUNTINGS

Section 11.1 — Right to Waive

Under 760 ILCS 3/813.1(g), a qualified beneficiary may waive the right to receive future trust accountings by an instrument in writing delivered to the trustee, and may at any time withdraw a previously given waiver in writing as to future accountings.

Section 11.2 — Election (Optional)

☐ I do not waive my right to receive future accountings.

☐ I hereby waive the right to receive future annual accountings until further written notice. I understand I may revoke this waiver at any time as to future accountings.

Beneficiary / Representative Signature: ____________________________________

Print Name: [________________________________]

Date: [__/__/____]

ARTICLE XII — TRUSTEE VERIFICATION

I, the undersigned Trustee, certify that:

(a) I am the duly acting trustee (or co-trustee) of the trust identified in Article I;

(b) I have prepared this accounting in good faith under the provision selected above;

(c) To the best of my knowledge and belief, the receipts, disbursements, distributions, trustee compensation, professional fees, beginning and ending statements of assets and liabilities, and other matters reported in this accounting are true, correct, and complete in all material respects for the period stated; and

(d) I have identified the recipients, delivery dates, and applicable statutory accounting provision above.

Trustee: ____________________________________

Print Name: [________________________________]

Date: [__/__/____]

Co-Trustee (if any): ____________________________________

Print Name: [________________________________]

Date: [__/__/____]

ARTICLE XIII — PROOF OF DELIVERY

I certify that on [__/__/____], I delivered this Annual Trust Accounting to each recipient identified in Section 1.4 by the method indicated therein. Tracking, certified mail receipts, or electronic-delivery confirmations are retained in the trust records.

Server: ____________________________________

Print Name: [________________________________]

Date: [__/__/____]

ARTICLE XIV — EXHIBITS (OPTIONAL)

The following exhibits, if any, are attached and incorporated by reference:

☐ Exhibit A — Detailed Schedule of Investments (Beginning)

☐ Exhibit B — Detailed Schedule of Investments (Ending)

☐ Exhibit C — Brokerage / Custody Statements

☐ Exhibit D — Bank Statements

☐ Exhibit E — Appraisals

☐ Exhibit F — Tax Returns (Form 1041, Schedule K-1) for the Period

☐ Exhibit G — Counsel / Accountant Engagement Letters

☐ Other: [________________________________]