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)

Under § 386B.8-130(1)(c), a qualified beneficiary who requests a report receives one at least annually and at termination, except as the Trust terms provide. Separately, subsection (2) requires communication to the specified qualified beneficiary or fiduciary designee about the irrevocable Trust's existence, the Trustee's identity, and the right to request trustee reports, regardless of Trust terms, subject to the subsection (3) transition rule. Subsection (2) alone does not require sending a full annual accounting without a request. KRS § 386B.1-030(2)(h).

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.8-020)

☐ 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. LIMITATION NOTICE — KRS § 386B.10-050

The date this report was sent to each recipient or representative is recorded in Section XVI.

KRS § 386B.10-050(2) bars a beneficiary's breach-of-trust proceeding more than one year after a report was sent to the beneficiary or representative only when the report adequately discloses the existence of a potential claim and informs the beneficiary of the time allowed to sue. Under subsection (3), disclosure is adequate if it gives enough information that the beneficiary or representative knows of the potential claim or should inquire into it. The Section XI table identifies any potential claim disclosed in this report; sending this report alone does not establish adequate disclosure.

If subsection (2) does not apply, subsection (4) requires a judicial proceeding for breach of trust within five years after discovery of injury to the beneficiary's rights. Determine the applicable period from the actual report, recipient, and facts.

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. Court Proceedings

KRS § 386B.2-010 permits judicial proceedings concerning trust administration, including settlement of a trustee's accounts. Under KRS § 386B.2-030, District and Circuit Courts generally have concurrent jurisdiction over trust proceedings brought by a trustee or beneficiary, except where a statute provides otherwise. If a proceeding starts in District Court, that court's jurisdiction becomes exclusive unless a party files a related Circuit Court action within 20 days after receiving notice. Verify the court and venue for the particular claim. Available relief 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.

The District Court has exclusive jurisdiction over matters under KRS § 386B.8-130 itself. KRS § 386B.8-130(4).

XIV. OPTIONAL — BENEFICIARY RECEIPT

The undersigned acknowledges receipt of this Accounting for the period [__/__/____] through [__/__/____] on [__/__/____].

This acknowledgment records receipt only. It does not consent to conduct, ratify a transaction, or release a claim. Any consent, release, or ratification under KRS § 386B.10-090 requires its own evaluation of capacity, rights, material facts, and improper conduct.

Beneficiary Signature: [________________________________]

Print Name: [________________________________]

Date: [__/__/____]

XV. TRUSTEE VERIFICATION AND SIGNATURE

I, the undersigned Trustee, certify based on the Trust records available to me:

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, record that the foregoing ANNUAL TRUST ACCOUNTING was sent or delivered to the following recipients by the methods and on the dates stated below. Supporting mailing, delivery, or electronic transmission records are retained with the Trust records.

I certify that the delivery information above is accurate to the best of my knowledge.

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.1-030 (Default and Mandatory Rules) — https://apps.legislature.ky.gov/law/statutes/statute.aspx?id=57780
• KRS § 386B.1-010(14) (Qualified Beneficiary) — https://apps.legislature.ky.gov/law/statutes/statute.aspx?id=57779
• KRS § 386B.8-020 (Duty of Loyalty) — https://apps.legislature.ky.gov/law/statutes/statute.aspx?id=43124
• KRS § 386B.10-090 (Beneficiary's Consent, Release, or Ratification) — https://apps.legislature.ky.gov/law/statutes/statute.aspx?id=43150
• KRS § 386B.2-030 (Concurrent Trust Jurisdiction) — https://apps.legislature.ky.gov/law/statutes/statute.aspx?id=43078
• KRS § 386B.2-010 (Role of Court) — https://apps.legislature.ky.gov/law/statutes/statute.aspx?id=43076
• KRS § 386B.10-010 (Remedies for Breach) — https://apps.legislature.ky.gov/law/statutes/statute.aspx?id=43142