Annual Trust Accounting and Trustee's Report - Maryland

ANNUAL TRUST ACCOUNTING AND TRUSTEE'S REPORT

(Pursuant to Maryland Code, Estates and Trusts Article § 14.5-813(c))

1. TRUST IDENTIFICATION AND ACCOUNTING PERIOD

2. STATUTORY LIMITATION NOTICE — § 14.5-904 (READ CAREFULLY)

IMPORTANT — TIME LIMIT FOR OBJECTION OR CLAIM

Pursuant to Md. Code Ann., Est. & Trusts § 14.5-904, a beneficiary may not bring a judicial action against the Trustee for breach of trust more than ONE (1) YEAR after the date the beneficiary or the beneficiary's representative is sent a report that adequately discloses the existence of a potential claim and informs the recipient of the time allowed for bringing the action.

A report "adequately discloses" a potential claim if it provides sufficient information so the beneficiary or representative knows of the potential claim or should have inquired into its existence.

This Notice informs you of the time allowed for bringing a judicial action under § 14.5-904. The one-year period applies only if this Report adequately discloses the potential claim within the meaning of that section.

Exception: Section 14.5-904(c) does not limit the time for bringing an action for breach of trust committed in bad faith or with reckless indifference to the purposes of the trust or the interests of the beneficiaries.

3. SCHEDULE A — STATEMENT OF ASSETS ON HAND (BEGINNING OF PERIOD)

4. SCHEDULE B — LIABILITIES OF THE TRUST

5. SCHEDULE C — RECEIPTS DURING ACCOUNTING PERIOD

6. SCHEDULE D — DISBURSEMENTS DURING ACCOUNTING PERIOD

List disbursements here other than distributions to beneficiaries and compensation recorded separately in Schedules E, F, and G, so the reconciliation does not count an outflow twice.

7. SCHEDULE E — DISTRIBUTIONS TO BENEFICIARIES

8. SCHEDULE F — TRUSTEE COMPENSATION (§ 14.5-813(c)(1))

9. SCHEDULE G — AGENT, ADVISOR, AND PROFESSIONAL COMPENSATION

10. SCHEDULE H — ASSETS ON HAND (END OF PERIOD) WITH MARKET VALUES

11. SCHEDULE I — RECONCILIATION

12. MARYLAND STATE-ONLY QTIP DISCLOSURE (If Applicable)

☐ This Trust holds property subject to a Maryland QTIP election made on a timely filed Maryland estate tax return under Md. Code Ann., Tax-Gen. § 7-309(b)(5). That election may differ from the federal estate tax election.

13. BENEFICIARY OBJECTION MECHANISM

If you object to any item disclosed in this Report, you may:

1. Informal resolution. Submit a written objection to the Trustee at the address listed in Section 1 within [____] days of the date this Report was sent. The Trustee will respond in writing within a reasonable time and will attempt to resolve the matter informally.

2. Nonjudicial settlement agreement. The parties may resolve the matter by a nonjudicial settlement agreement under Md. Code Ann., Est. & Trusts § 14.5-111, provided the agreement does not violate a material purpose of the Trust and includes terms a court could properly approve.

3. Judicial petition. If a judicial action is needed, commence it in a court with jurisdiction under Md. Code Ann., Est. & Trusts § 14.5-201. If the report adequately discloses a potential breach claim and gives the required time warning, apply the one-year limit stated in Section 2, subject to § 14.5-904(c) and any other applicable law.

14. ACKNOWLEDGMENT OF RECEIPT; SEPARATE RELEASE IF APPLICABLE (§ 14.5-907)

Signature below acknowledges receipt of this Report only. It does not release the Trustee or waive an objection. Any separate consent, release, or ratification is governed by § 14.5-907(b), including its improper-conduct and informed-consent limits. The separate deemed-release procedure in § 14.5-907(c) through (f) applies only on trust termination or trustee resignation or removal, and requires its own five-year accounting, mailing by both first-class and certified mail with return receipt requested, statutory notices, and 120-day objection period.

15. TRUSTEE VERIFICATION

I, the undersigned Trustee, solemnly affirm under the penalties of perjury and upon personal knowledge that:

1. I am the duly acting Trustee of the Trust identified above;
2. The foregoing accounting is a true, complete, and accurate report of the trust property, liabilities, receipts, disbursements, distributions, and compensation for the accounting period stated, prepared in accordance with Md. Code Ann., Est. & Trusts § 14.5-813(c);
3. Fair market values stated are based on the sources identified or, where unavailable, on reasonable methods identified herein;
4. I have not knowingly omitted any material transaction or interest; and
5. This Report is being sent to each qualified beneficiary entitled to receive it.

16. NOTARY ACKNOWLEDGMENT

STATE OF MARYLAND

COUNTY OF [____________], to wit:

On this [____] day of [____________], 20[__], before me, the undersigned notary public, personally appeared [________________________________], who is personally known to me or who has produced satisfactory identification, and who acknowledged that he/she/they executed the foregoing Annual Trust Accounting and Trustee's Report as Trustee of the above-named Trust for the purposes therein stated, and made oath in due form of law that the matters and facts set forth therein are true and correct to the best of his/her/their knowledge, information, and belief.

17. CERTIFICATE OF SERVICE

I, [________________________________], certify that on [__/__/____], I caused a true and correct copy of this Annual Trust Accounting and Trustee's Report (together with the proposed Receipt, Release, and Refunding Agreement) to be sent to each qualified beneficiary entitled to receive it, as follows:

SOURCES AND REFERENCES

• Md. Code Ann., Est. & Trusts § 14.5-813(c) (Trustee's report — content and timing)
• Md. Code Ann., Est. & Trusts § 14.5-904 (Limitation on actions against trustee — 1-year report rule; no limit for bad-faith or reckless-indifference breach)
• Md. Code Ann., Est. & Trusts § 14.5-907 (Beneficiary's consent, release, or ratification)
• Md. Code Ann., Est. & Trusts § 14.5-111 (Nonjudicial settlement agreements)
• Md. Code Ann., Est. & Trusts § 14.5-201 (Court jurisdiction over trust administration — equity superintending power)
• Md. Code Ann., Tax-Gen. § 7-309(b)(5) (Maryland QTIP election)