Annual Trust Accounting (Indiana)

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4. Remove all guidance comments before final execution
5. INDIANA STATUTORY BASIS:
- IC 30-4-5-12(a): trustee shall deliver written statement of accounts to each
income beneficiary annually unless waived in writing or trust provides otherwise.
Statement must show at minimum (i) all receipts/disbursements since last statement
and (ii) all items of trust property at inventory value.

• IC 30-4-5-12(c): petition for court-ordered verified accounting.

• IC 30-4-5-13(a): if filed with the court, the verified account must include:
  (1) period covered; (2) total principal chargeable per prior statement/inventory;
  (3) itemized schedule of principal cash/property received, disbursed, distributed;
  (4) itemized schedule of income received, disbursed, distributed;
  (5) closing balance of principal and income, how invested, with inventory AND
  current market values; (6) statement of administration in accordance with trust;
  (7) names/addresses of all living beneficiaries and any under legal disability;
  (8) description of any unborn/unascertained beneficiary's interest;
  (9) trustee business or residence addresses.

• IC 30-4-5-14: written beneficiary approval discharges trustee from liability
  as to that beneficiary for matters disclosed. Objections must be specific.

• IC 30-4-5-16: beneficiary consent/release/ratification rules.

• IC 30-4-3-22: trustee liability and exculpation limits.
• IC 34-11-2-7: six-year residual statute of limitations applies in Indiana to
  many trust-related claims absent a more specific limitations provision.

6. Indiana did NOT adopt the UTC; do not assume UTC § 1005 (1-year/5-year) timing.
7. Have this document reviewed by qualified Indiana-licensed counsel before use.
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ANNUAL TRUST ACCOUNTING

(Pursuant to Indiana Code § 30-4-5-12 and § 30-4-5-13)

TABLE OF CONTENTS

1. Cover Page and Trust Identification
2. Accounting Period and Statutory Basis
3. Beneficiary Identification
4. Trustee Identification and Compensation
5. Schedule A — Assets on Hand (Inventory Value and Fair Market Value)
6. Schedule B — Liabilities
7. Schedule C — Principal Receipts
8. Schedule D — Income Receipts
9. Schedule E — Principal Disbursements
10. Schedule F — Income Disbursements
11. Schedule G — Distributions to Beneficiaries
12. Schedule H — Trustee and Agent Compensation
13. Schedule I — Reconciliation and Closing Balances
14. Statement of Administration in Accordance with Trust
15. Statute-of-Limitations and Discharge Notice
16. Beneficiary Objection Procedure (IC 30-4-5-14)
17. Beneficiary Receipt, Approval, and Release
18. Trustee Verification

1. COVER PAGE AND TRUST IDENTIFICATION

2. ACCOUNTING PERIOD AND STATUTORY BASIS

3. BENEFICIARY IDENTIFICATION

(Required by IC 30-4-5-13(a)(7) and (8) when filed with court; recommended for all annual statements.)

Unborn or Unascertained Beneficiaries (IC 30-4-5-13(a)(8)): [________________________________]

4. TRUSTEE IDENTIFICATION AND COMPENSATION

5. SCHEDULE A — ASSETS ON HAND (INVENTORY VALUE AND FAIR MARKET VALUE)

(Required by IC 30-4-5-12(a)(2) and § 30-4-5-13(a)(5); per § 30-4-5-13(a)(5), both inventory AND current market values must be shown when account is filed with the court.)

6. SCHEDULE B — LIABILITIES

NET TRUST VALUE (Assets − Liabilities): $ [__________]

7. SCHEDULE C — PRINCIPAL RECEIPTS

(IC 30-4-5-13(a)(3) — itemized schedule of principal cash and property received.)

8. SCHEDULE D — INCOME RECEIPTS

(IC 30-4-5-13(a)(4) — itemized schedule of income received.)

9. SCHEDULE E — PRINCIPAL DISBURSEMENTS

10. SCHEDULE F — INCOME DISBURSEMENTS

11. SCHEDULE G — DISTRIBUTIONS TO BENEFICIARIES

12. SCHEDULE H — TRUSTEE AND AGENT COMPENSATION

13. SCHEDULE I — RECONCILIATION AND CLOSING BALANCES

(IC 30-4-5-13(a)(2) and (a)(5).)

How Closing Balance Is Invested (IC 30-4-5-13(a)(5)): [________________________________]

14. STATEMENT OF ADMINISTRATION IN ACCORDANCE WITH TRUST

(IC 30-4-5-13(a)(6).)

The undersigned Trustee states that, to the best of the Trustee's knowledge, the Trust has been administered during the accounting period in accordance with the terms of the Trust and applicable Indiana law.

15. STATUTE-OF-LIMITATIONS AND DISCHARGE NOTICE

Notice to Beneficiary — Time-Bar and Discharge Effect. The Recipient is hereby advised of the following:

1. Six-Year Residual Limitations Period (Ind. Code § 34-11-2-7). Indiana law generally imposes a six (6) year residual statute of limitations on claims relating to trust administration where no more specific period applies. Claims based on a fully and frankly disclosed matter may accrue from the date the matter is so disclosed. The Recipient should not rely on this paragraph as legal advice regarding any specific claim; consult independent counsel.

2. Effect of Written Approval (IC 30-4-5-14(a)). If the Recipient approves this annual written statement in writing, the Recipient will be deemed to have discharged the Trustee from liability as to that Recipient for all matters disclosed in this statement.

3. Consent / Release / Ratification (IC 30-4-5-16). A beneficiary may consent to, release the Trustee from liability for, or ratify a Trustee action, subject to the conditions and limitations of IC 30-4-5-16. Such consent, release, or ratification is not effective if the beneficiary did not know of the beneficiary's rights or of material facts that the Trustee knew or should have known and did not reasonably disclose.

4. Exculpation Limits (IC 30-4-3-22). Notwithstanding any term of the Trust, the Trustee may not be exculpated for breach of trust committed in bad faith or with reckless indifference to the purposes of the Trust or the interests of the beneficiaries.

16. BENEFICIARY OBJECTION PROCEDURE (IC 30-4-5-14)

A beneficiary who objects to any matter in this accounting may take any one or more of the following actions:

1. Informal Objection. Deliver a written objection to the Trustee at the address in Section 4 within [____] days of receipt. (This template recommends 60 days but is not a statutory period.)

2. Petition for Court Accounting and Approval (IC 30-4-5-12(c)). Petition the court of probate jurisdiction in [________________________________] County, Indiana, to direct the Trustee to file a verified written statement of accounts containing all items required by IC 30-4-5-13(a).

3. File Specific Objections in Approval Proceeding (IC 30-4-5-14(b)–(d)). If the Trustee petitions the court for approval of a verified written statement of accounts, the Recipient may file a responsive pleading within the time period provided by the Indiana Rules of Procedure. Objections must be specific. Upon the filing of objections, the court shall determine the correctness of the statement, the validity and propriety of all Trustee actions described, and may take any additional action it deems necessary, including surcharge.

4. Action for Breach of Trust (IC 30-4-3-22). Commence an action for damages, surcharge, removal, or other appropriate relief.

17. BENEFICIARY RECEIPT, APPROVAL, AND RELEASE

(Use of this section is voluntary; the Recipient is not required to sign and should consider obtaining independent legal advice before signing.)

I, [________________________________], the undersigned beneficiary (or personal representative of beneficiary) of the Trust identified in Section 1, hereby acknowledge and state:

☐ I have received a copy of this Annual Trust Accounting for the period [__/__/____] to [__/__/____];

☐ I have had a reasonable opportunity to review the Accounting and to consult independent counsel and a CPA at my own election;

☐ I approve the Annual Trust Accounting and the Trustee's actions disclosed therein, and pursuant to Ind. Code § 30-4-5-14(a) and § 30-4-5-16, I release and discharge the Trustee from liability to me for all matters fully and frankly disclosed in this Accounting, subject to the limits of IC 30-4-3-22.

Signature: _____________________________________

Printed Name: [________________________________]

Date: [__/__/____]

18. TRUSTEE VERIFICATION

(Required when account is filed under IC 30-4-5-12(c); recommended for all accounts.)

I, [________________________________], currently acting Trustee of the Trust identified in Section 1, under the penalties for perjury under the laws of the State of Indiana, verify that:

1. I have prepared, or caused to be prepared under my direction, this Annual Trust Accounting and the accompanying Schedules A through I;

2. The information set forth is true and correct to the best of my knowledge, information, and belief;

3. The Trust has been administered in accordance with its terms and the Indiana Trust Code during the accounting period;

4. This Accounting includes all material matters known to me concerning the administration of the Trust during the accounting period.

Signature: _____________________________________

Printed Name: [________________________________]

Title: Trustee

Date: [__/__/____]

SOURCES AND REFERENCES

• Ind. Code § 30-4-5-12 (Accounting by Trustees): https://codes.findlaw.com/in/title-30-trusts-and-fiduciaries/in-code-sect-30-4-5-12/
• Ind. Code § 30-4-5-13 (Content of Statements of Account): https://codes.findlaw.com/in/title-30-trusts-and-fiduciaries/in-code-sect-30-4-5-13/
• Ind. Code § 30-4-5-14 (Settlements; Objections; Surcharge): https://codes.findlaw.com/in/title-30-trusts-and-fiduciaries/in-code-sect-30-4-5-14/
• Ind. Code § 30-4-5-16 (Consent, Release, Ratification by Beneficiary)
• Ind. Code § 30-4-3-6 (Duties of Trustee): https://codes.findlaw.com/in/title-30-trusts-and-fiduciaries/in-code-sect-30-4-3-6/
• Ind. Code § 30-4-3-22 (Trustee Liability; Exculpation Limits)
• Ind. Code § 34-11-2-7 (Six-Year Residual Statute of Limitations)
• Indiana General Assembly, Title 30: https://iga.in.gov/laws/current/ic/titles/30/

END OF ANNUAL TRUST ACCOUNTING