Annual Trust Accounting and Report (Kansas Uniform Trust Code K.S.A. § 58a-813(c) and § 58a-1005)

ANNUAL TRUST ACCOUNTING AND REPORT

Pursuant to K.S.A. § 58a-813(c) and Subject to K.S.A. § 58a-1005

I. TRUST IDENTIFICATION

II. TRUSTEE IDENTIFICATION

III. QUALIFIED BENEFICIARIES RECEIVING THIS REPORT (§ 58a-813(b)(5))

IV. SUMMARY OF ACCOUNT

V. SCHEDULE OF RECEIPTS (§ 58a-813(b)(5))

A. Income Receipts

B. Principal Receipts

VI. SCHEDULE OF DISBURSEMENTS (§ 58a-813(b)(5))

A. Ordinary Administration Expenses

B. Distributions to Beneficiaries

C. Taxes

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

VIII. ENDING STATEMENT OF ASSETS — MARKET VALUES (§ 58a-813(b)(5)) (As of [__/__/____])

☐ Market value is not feasible to determine for the following asset(s); the basis stated reflects [____________________]: [____________________].

IX. STATEMENT OF LIABILITIES (§ 58a-813(b)(5))

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

X. TRUSTEE COMPENSATION AND AGENTS HIRED

A. Trustee Compensation — Source and Amount (§ 58a-813(b)(5))

B. Agents Hired by Trustee

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. INVESTMENT RATE OF RETURN (§ 58a-813(b)(5)) — UPON REQUEST

☐ Not provided in this report; available upon written request to the Trustee.

☐ Investment rate of return for the accounting period: [______]%. Calculation method: [____________________]. The method ☐ does ☐ does not comply with the standards established by the Association of Investment Management and Research (AIMR).

XII. STATUTORY LIMITATION NOTICE — ONE-YEAR PERIOD UNDER K.S.A. § 58a-1005(a)

NOTICE OF LIMITATION ON BREACH-OF-TRUST CLAIMS — K.S.A. § 58a-1005(a)

A BENEFICIARY MAY NOT COMMENCE A PROCEEDING AGAINST THE TRUSTEE FOR BREACH OF TRUST MORE THAN ONE (1) YEAR AFTER THE DATE THIS REPORT IS SENT TO THE BENEFICIARY (OR THE BENEFICIARY'S REPRESENTATIVE), IF THE REPORT ADEQUATELY DISCLOSED THE EXISTENCE OF A POTENTIAL CLAIM FOR BREACH OF TRUST. THE TIME ALLOWED FOR COMMENCING SUCH A PROCEEDING IS ONE (1) YEAR FROM THE DATE THIS REPORT WAS SENT TO YOU. IF THIS NOTICE OR THE DISCLOSURE IN THIS REPORT DOES NOT MEET THOSE STATUTORY REQUIREMENTS, THE RESIDUAL TWO-YEAR LIMITATION OF K.S.A. § 58a-1005(c) MAY APPLY.

Date this Report was sent (start of the one-year period if § 58a-1005(a) applies): [__/__/____]

XIII. BENEFICIARY OBJECTION MECHANISM

A qualified beneficiary who questions or objects to any item in this Report is encouraged to deliver a written objection to the Trustee at the address in Section II within [____] days of receipt. This informal step does not extend, shorten, or substitute for the statutory limitation period stated in Section XII.

If the matter cannot be resolved informally, a qualified beneficiary may file a petition in the Kansas District Court, Probate Division, in the county where the Trust is principally administered (K.S.A. § 58a-204). Available relief includes, without limitation, compelling a fuller accounting, surcharge of the Trustee for breach of trust, removal of the Trustee, and an award of damages.

Trustee Contact for Objections / Inquiries:

XIV. WAIVER OF REPORT (K.S.A. § 58a-813(c))

A qualified beneficiary may waive in writing the right to receive future trustee reports or other information otherwise required to be furnished under K.S.A. § 58a-813. A waiver as to future reports may be withdrawn at any time as to subsequent reports. To submit or withdraw a waiver, deliver a signed writing to the Trustee at the address in Section II.

XV. BENEFICIARY RECEIPT AND RELEASE (K.S.A. § 58a-1009) — OPTIONAL

The undersigned beneficiary acknowledges receipt of the foregoing Annual Trust Accounting and Report and, having reviewed it in full and having had the opportunity to consult independent legal counsel:

1. Acknowledges that the Report adequately discloses the assets, liabilities, receipts, disbursements, trustee compensation, agent compensation, and related-party transactions of the Trust for the accounting period stated;

2. Confirms that the consent and release given below are not induced by any improper conduct of the Trustee, and that the undersigned knows of the undersigned's rights as a beneficiary and of the material facts relating to the matters disclosed (K.S.A. § 58a-1009);

3. Approves and ratifies all acts and transactions of the Trustee for the accounting period as set forth in the Report; and

4. Releases the Trustee from all liability for any matter adequately disclosed in the Report, subject to the limits of K.S.A. § 58a-1008 (no release of bad-faith or reckless breach).

Beneficiary Signature: [________________________________]

Print Name: [________________________________]

Date: [__/__/____]

Notary Acknowledgment (recommended):

State of Kansas )

County of ____________________ ) ss.

On this ___ day of __________, 20__, before me personally appeared [____________________], known to me (or satisfactorily proven) to be the person whose name is subscribed to the foregoing Receipt and Release, and acknowledged executing the same for the purposes therein contained.

Notary Public: ______________________

My Commission Expires: ______________________

XVI. TRUSTEE VERIFICATION

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

1. I have reviewed the foregoing Annual Trust Accounting and Report 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, agents hired (including any related-party agents), and related-party transactions for the accounting period stated above are disclosed;

4. This Report is furnished pursuant to K.S.A. § 58a-813(b)(5) (and, where applicable, § 58a-813(e)) of the Kansas Uniform Trust Code; and

5. The limitation notice in Section XII is provided to inform each beneficiary of the time allowed for commencing a proceeding under K.S.A. § 58a-1005(a).

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

Trustee Signature: [________________________________]

Print Name: [________________________________]

Capacity: [________________________________]

XVII. 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 TRUST ACCOUNTING AND REPORT on each qualified 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 [____________________], Kansas, OR by personal delivery as indicated, OR by another method permitted under K.S.A. § 58a-109.

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

Date: [__/__/____]

Signature: [________________________________]

Print Name: [________________________________]

Address: [________________________________]

SOURCES AND REFERENCES

• K.S.A. § 58a-101 et seq. (Kansas Uniform Trust Code) — https://www.ksrevisor.gov/statutes/ksa_ch58a.html
• K.S.A. § 58a-105 (Default and Mandatory Rules) — https://www.ksrevisor.gov/statutes/chapters/ch58a/058a_001_0005.html
• K.S.A. § 58a-204 (Venue) — https://www.ksrevisor.gov/statutes/chapters/ch58a/058a_002_0004.html
• K.S.A. § 58a-303 (Representation by Fiduciaries and Parents) — https://www.ksrevisor.gov/statutes/chapters/ch58a/058a_003_0003.html
• K.S.A. § 58a-813 (Duty to Inform and Report) — https://www.ksrevisor.gov/statutes/chapters/ch58a/058a_008_0013.html
• K.S.A. § 58a-1005 (Limitation of Action Against Trustee) — https://www.ksrevisor.gov/statutes/chapters/ch58a/058a_010_0005.html
• K.S.A. § 58a-1008 (Exculpation of Trustee) — https://www.ksrevisor.gov/statutes/chapters/ch58a/058a_010_0008.html
• K.S.A. § 58a-1009 (Beneficiary's Consent, Release, or Ratification) — https://www.ksrevisor.gov/statutes/chapters/ch58a/058a_010_0009.html