Annual Trust Accounting (Kentucky Uniform Trust Code KRS § 386B.8-130(1)(c) and (3))

ANNUAL TRUST ACCOUNTING

Pursuant to Kentucky Uniform Trust Code, KRS § 386B.8-130

I. TRUST IDENTIFICATION

II. TRUSTEE IDENTIFICATION

III. QUALIFIED BENEFICIARIES RECEIVING THIS ACCOUNT (KRS § 386B.8-130)

IV. SUMMARY OF ACCOUNT (KRS § 386B.8-130(1)(c)2.)

V. SCHEDULE OF RECEIPTS

A. Income Receipts

B. Principal Receipts

VI. SCHEDULE OF DISBURSEMENTS

A. Ordinary Administration Expenses

B. Distributions to Beneficiaries

C. Taxes

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

VIII. ENDING STATEMENT OF ASSETS (KRS § 386B.8-130(1)(c)2.) (As of [__/__/____])

IX. STATEMENT OF LIABILITIES (KRS § 386B.8-130(1)(c)2.)

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

X. TRUSTEE COMPENSATION AND AGENTS HIRED (KRS § 386B.8-130(1)(c)2.)

A. Trustee Compensation — Source and Amount

B. Agents Hired by Trustee

C. Related-Party Transactions (Duty of Loyalty, KRS § 386B.8-100)

☐ 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. SUMMARY OF MATERIAL ACTIONS, EXERCISES OF DISCRETION, AND POTENTIAL CLAIMS

The Trustee discloses the following material actions and exercises of discretion during the accounting period that a qualified beneficiary may wish to review:

1. [____________________________________________________________]

2. [____________________________________________________________]

3. [____________________________________________________________]

☐ Other than as disclosed in the schedules above, the Trustee performed only routine administrative functions during the accounting period.

XII. ONE-YEAR LIMITATION NOTICE — KRS § 386B.10-050(2)

STATUTORY LIMITATION NOTICE — KENTUCKY UNIFORM TRUST CODE

Pursuant to KRS § 386B.10-050(2), you may not commence a proceeding against the Trustee for breach of trust more than ONE (1) YEAR after the date this report was sent to you (or to your representative), to the extent this report adequately discloses the existence of a potential claim for breach of trust. A report adequately discloses the existence of a potential claim if it provides sufficient information so that you or your representative knows of the potential claim or should have inquired into its existence. If you believe this report discloses a potential claim against the Trustee, you must commence any proceeding within one (1) year of the date this report was sent to you. If the foregoing notice does not apply, any judicial proceeding by you against the Trustee for breach of trust must be commenced within FIVE (5) YEARS of discovery of an injury by the Trustee to your rights as a beneficiary (KRS § 386B.10-050(4)).

XIII. BENEFICIARY OBJECTION MECHANISM AND COURT PETITION RIGHTS

A. Informal Objection to Trustee

A qualified 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 Section XII.

Trustee Contact for Objections / Inquiries:

B. Right to Petition Kentucky Circuit Court

You are hereby notified that, as a qualified beneficiary receiving this account, you may petition the Kentucky Circuit Court for the county where the Trust's principal place of administration is located, under KRS Chapter 386B, for relief that may include:

• review and settlement of the Trustee's accounts;
• compelling the Trustee to redress a breach of trust;
• removing a Trustee under KRS § 386B.7-060;
• surcharging the Trustee for damages caused by breach of trust under KRS § 386B.10-010 and § 386B.10-020;
• construing the terms of the Trust; and
• such other relief as the Court may grant.

Disputes arising under KRS § 386B.8-130 itself (the duty to inform and report) are subject to exclusive jurisdiction in the District Court under KRS § 386B.8-130(4). All other trust-administration petitions under KRS Chapter 386B generally lie in Circuit Court (KRS § 386B.2-030).

XIV. OPTIONAL — BENEFICIARY RECEIPT, RELEASE, AND RATIFICATION (KRS § 386B.10-090)

The undersigned Qualified Beneficiary acknowledges:

1. Receipt of the foregoing Annual Trust Accounting for the period from [__/__/____] through [__/__/____];

2. Opportunity to review the schedules, statement of assets, statement of liabilities, trustee compensation, agents hired, related-party disclosures, and material actions described in Sections IV through XI; and

3. Opportunity to consult independent legal, accounting, or other advisors of the undersigned's choosing.

Subject to the limits of KRS § 386B.10-080 (which preclude release for breaches committed in bad faith or with reckless indifference to the purposes of the trust or the interests of the beneficiaries), the undersigned, having full knowledge of the rights and material facts disclosed in this Accounting, hereby:

☐ CONSENTS to the acts and transactions of the Trustee described in this Accounting;

☐ RATIFIES the acts and transactions of the Trustee described in this Accounting; and

☐ RELEASES the Trustee from any and all claims arising out of, or adequately disclosed by, this Accounting, pursuant to KRS § 386B.10-090.

The undersigned represents that this consent, ratification, and release is given voluntarily, with full knowledge of the rights and material facts disclosed in this Accounting, and was not induced by any improper conduct of the Trustee.

Beneficiary Signature: [________________________________]

Print Name: [________________________________]

Date: [__/__/____]

XV. TRUSTEE VERIFICATION AND SIGNATURE

I, the undersigned Trustee, declare under penalty of perjury under the laws of the Commonwealth of Kentucky:

1. I have reviewed the foregoing Annual Trust 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 KRS § 386B.8-130.

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

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 TRUST ACCOUNTING 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 [____________________], Kentucky, OR by personal delivery or electronic transmission as indicated below.

I declare under penalty of perjury under the laws of the Commonwealth of Kentucky that the foregoing is true and correct.

Date: [__/__/____]

Signature: [________________________________]

Print Name: [________________________________]

Address: [________________________________]

SOURCES AND REFERENCES

• KRS § 386B.8-130 (Duty to Inform and Report) — https://apps.legislature.ky.gov/law/statutes/statute.aspx?id=43135
• KRS § 386B.10-050 (Limitation of Action Against Trustee) — https://apps.legislature.ky.gov/law/statutes/statute.aspx?id=44668
• KRS Chapter 386B (Kentucky Uniform Trust Code) — https://apps.legislature.ky.gov/law/statutes/chapter.aspx?id=43110
• KRS § 386B.1-040 (Mandatory Provisions) — https://apps.legislature.ky.gov/law/statutes/statute.aspx?id=43113
• KRS § 386B.10-080 (Exculpation of Trustee) — https://apps.legislature.ky.gov/law/statutes/chapter.aspx?id=43110
• KRS § 386B.10-090 (Beneficiary's Consent, Release, or Ratification) — https://apps.legislature.ky.gov/law/statutes/chapter.aspx?id=43110
• KRS § 386B.2-030 (Subject-Matter Jurisdiction — Circuit Court) — https://apps.legislature.ky.gov/law/statutes/chapter.aspx?id=43110
• Kentucky Principal and Income Act, KRS § 386.450 et seq. — https://apps.legislature.ky.gov/law/statutes/chapter.aspx?id=39164