Annual Trust Accounting and Trustee's Report (Michigan)

ANNUAL TRUST ACCOUNTING AND TRUSTEE'S REPORT

(Pursuant to MCL § 700.7814(3))

STATE OF MICHIGAN
COUNTY OF [________________________________]

I. TRUST AND TRUSTEE IDENTIFICATION

1. Name of Trust:
[________________________________]

2. Date of Original Trust Instrument:
[__/__/____]

3. Date(s) of Each Operative Amendment or Restatement:
[________________________________]

4. Settlor(s) of the Trust:
[________________________________]

5. Trustee Submitting This Accounting:
[________________________________]

6. Trustee's Mailing Address, Telephone, Email:
[________________________________]

7. County of Principal Place of Administration:
[________________________________]

8. Court in Which Trust Is Registered (if any):
[________________________________]

9. Federal Taxpayer Identification Number of Trust:
[________________________________]

II. ACCOUNTING PERIOD

Accounting Period Covered by This Report:

From: [__/__/____] Through: [__/__/____]

☐ This is an ANNUAL accounting under MCL § 700.7814(3).
☐ This is a FINAL accounting on termination of the Trust under
MCL § 700.7814(3).
☐ This is an INTERIM accounting for the period stated above.

III. REPORT RECIPIENTS AND APPLICABILITY

MCL 700.7814(3) requires reports at least annually and at termination to distributees and permissible distributees of income or principal, and to other qualified or nonqualified beneficiaries who request them. A vacancy without a remaining cotrustee also requires a report from the former Trustee as that subsection provides. This Report is sent to the following recipients under those rules, the Trust terms, a court order or voluntary disclosure; identify the basis for each delivery.

Review the revocable-trust and entire-principal withdrawal-power rules in MCL 700.7603 and any qualifying nondisclosure provisions under MCL 700.7409a and 700.7105(2)(j). Qualified status follows both branches of MCL 700.7103(g), including settlor material-purpose intent and the fallback when no beneficiary meets that branch. A representative must have authority under MCL 700.7301–700.7305 and satisfy the applicable conflict limits.

Trust revocability, withdrawal-power and nondisclosure status, and reporting basis: [STATUS, DATES AND BASIS]

Applicable report waivers, withdrawals of waiver and court directions: [IDENTIFY OR NONE]

IV. SCHEDULE A — STATEMENT OF ASSETS (CARRYING VALUE AND FAIR MARKET VALUE)

A-1. Cash and Cash Equivalents

A-2. Marketable Securities

A-3. Real Property

A-4. Closely Held Business Interests

A-5. Tangible Personal Property and Other Assets

A-6. Total Assets

V. SCHEDULE B — STATEMENT OF LIABILITIES

Net Trust Estate (Total FMV Assets minus Total Liabilities): $[____]

VI. SCHEDULE C — RECEIPTS DURING ACCOUNTING PERIOD

C-1. Income Receipts

C-2. Principal Receipts (Sale Proceeds, Contributions, Other)

Identify sale proceeds separately from realized gains/losses and avoid counting the same funds twice. Describe any in-kind receipts and transfers between Trust accounts separately.

C-3. Total Receipts

TOTAL RECEIPTS (Income + Principal): $[____]

VII. SCHEDULE D — DISBURSEMENTS DURING ACCOUNTING PERIOD

D-1. Income Disbursements (Administration Expenses Charged to Income)

D-2. Principal Disbursements (Administration Expenses Charged to Principal)

D-3. Distributions to or for Beneficiaries

D-4. Total Disbursements

TOTAL DISBURSEMENTS (Income + Principal + Distributions): $[____]

VIII. SCHEDULE E — TRUSTEE AND AGENT COMPENSATION

E-1. Trustee Compensation

E-2. Agent Compensation (Investment, Legal, Accounting, Custodial, Other)

E-3. Additional Investment-Service Compensation Disclosure

If the Trustee receives investment advisory or investment management compensation from an investment company or investment trust described in MCL 700.7802(5), state the rate and method by which it was determined, as required at least annually for persons entitled to the annual report:

Provider, services, rate and method: [DETAILS OR NOT APPLICABLE]

Compensation shown in Schedule E must cross-reference its disbursement entries rather than be counted again as a second expense.

E-4. Reconciliation and Supporting Records

Opening asset schedule; purchases/sales; realized and unrealized gains/losses; noncash changes; explanation of closing assets: [ATTACHED RECONCILIATION]

Valuation date/method and explanation where market value is not feasible: [DETAILS]

Supporting records and transaction disclosures attached: [DOCUMENTS AND PAGES]

IX. NOTICE OF LIMITATION PERIOD — MCL 700.7905

IMPORTANT — TIME LIMIT FOR CLAIMS AGAINST THE TRUSTEE

PLEASE READ CAREFULLY. Pursuant to the Michigan Trust Code,
MCL § 700.7905(1)(a):

A trust beneficiary shall not commence a proceeding against the trustee
for breach of trust more than ONE (1) YEAR after the date the trust
beneficiary (or a representative of the trust beneficiary) was sent a
report that adequately disclosed the existence of a potential claim for
breach of trust and informed the trust beneficiary of the time allowed
for commencing a proceeding.

The one-year period in MCL 700.7905(1)(a) applies only if a report sent to the beneficiary or authorized representative adequately discloses a potential breach-of-trust claim and informs the beneficiary of the time allowed to commence a proceeding. Under subsection (2), disclosure is adequate if it gives sufficient information so that the beneficiary or representative knows of the potential claim or should have inquired into its existence. The Trustee's description of this document as an accounting does not itself determine adequacy.

Potential-claim disclosure record:

Additional facts or explanations needed for disclosure: [DETAILS OR NONE]

For a potential claim adequately disclosed by a sent report containing this limitations notice, the beneficiary must commence a proceeding within one year after that report was sent, subject to applicable law. Merely objecting to the Trustee or requesting information is separate from commencing a proceeding.

MCL 700.7905(1)(b) separately provides that a beneficiary who waived reports under MCL 700.7814(5) shall not commence a breach proceeding more than one year after the end of the calendar year in which the alleged breach occurred. If subsection (1) does not apply, subsection (3) requires commencement within five years after the first of the Trustee's removal, resignation or death, termination of the beneficiary's interest, or termination of the Trust. These periods apply in addition to other limitations provided by law.

X. BENEFICIARY OBJECTION MECHANISM

If you object to any item, transaction, valuation, fee, distribution, or
omission in this Annual Trust Accounting and Trustee's Report, you may:

1. Deliver a written objection to the trustee at the address in
   Section I, identifying with specificity each item objected to and the
   reason for the objection;

2. Request additional information from the trustee pursuant to
   MCL § 700.7814(1); and/or

3. Commence an appropriate judicial proceeding, subject to Section IX and applicable filing requirements. MCL 700.7203 gives the probate court exclusive jurisdiction over specified trust-administration proceedings brought by a Trustee or beneficiary and concurrent jurisdiction over other proceedings involving a trust. Venue follows MCL 700.7204: registration, where an unregistered trust could properly be registered, the open testamentary-estate branch, and the special no-trustee/no-registration branches, with applicable court-rule provisions. Identify the selected court and actual venue basis: [COURT, COUNTY AND BASIS].

The court's breach remedies under MCL 700.7901 include ordering the Trustee to account in subsection (2)(d); that provision is not an exculpation or beneficiary-release rule.

XI. OPTIONAL RECEIPT, APPROVAL AND TRANSACTION RELEASE

Signing this section is optional. Select each intended act separately:

☐ Receipt only. I acknowledge receipt of the Report and attachments identified below. This election alone gives no approval, consent, release or ratification.

☐ Approval / ratification of identified transactions. After reviewing the disclosed material facts, I approve or ratify only these transactions: [EXACT TRANSACTIONS, DATES AND DOCUMENT REFERENCES].

☐ Release of the Trustee for identified conduct. I release [TRUSTEE NAME] from liability to me for only the following identified conduct or breach, on the stated terms: [CONDUCT, DATES, MATERIAL FACTS, CLAIMS AND RELEASE TERMS].

MCL 700.7909 governs beneficiary consent, release or ratification: the Trustee is not protected if it was induced by improper trustee conduct or the beneficiary did not know one or more material facts relating to the breach. A Trust term purporting to exculpate a Trustee is separately subject to MCL 700.7908; it cannot relieve liability for bad faith or reckless indifference or result from abuse of the specified fiduciary/confidential relationship. This optional election does not itself release agents or impose a release on another beneficiary.

Report and attachments received: [DOCUMENTS, PAGES AND RECEIPT DATE]

Facts and rights reviewed; any unresolved information request: [DETAILS]

I make only the checked elections voluntarily, with knowledge of the material facts relating to the specified conduct. I had the opportunity to consult counsel of my choosing.

Beneficiary or authorized representative signature: [________________________________]

Printed name and representative authority, if applicable: [________________________________]

Date: [DATE]

XII. TRUSTEE VERIFICATION

I, the undersigned Trustee, certify to the best of my knowledge and belief that:

1. I am the duly serving trustee of the Trust identified above;

2. I have prepared this Annual Trust Accounting and Trustee's Report based
   on the books and records of the Trust;

3. To the best of my knowledge and belief, the schedules set forth above
   accurately and completely reflect the assets, liabilities, receipts,
   disbursements, distributions, and compensation of and from the Trust
   during the accounting period stated in Section II;

4. This Report is delivered in satisfaction of the trustee's duty to
   report under MCL § 700.7814(3); and

5. Section IX states the applicable report-related limitations notice and records the supporting disclosures. Whether a potential claim was adequately disclosed is governed by MCL 700.7905(2), not this certification alone.

XIII. DELIVERY RECORD

MCL 700.7109 requires a suitable method likely to result in receipt, subject to its unknown-person/location and written-waiver provisions. Judicial-process notices have separate requirements. I certify that I sent this Report and the listed attachments to the identified recipient or authorized representative by the recorded method on the actual sending date.

Signature of Server: [________________________________]
Printed Name: [________________________________]
Date: [__/__/____]

SOURCES AND REFERENCES

• Current official Legislature PDFs for the sections quoted in the frontmatter.
• MCL 700.7814 — information, report recipients/content and waiver; MCL 700.7103, 700.7105, 700.7409a and 700.7603 — applicable status and disclosure rules.
• MCL 700.7905 — report-related limitation periods and actual disclosure standard.
• MCL 700.7909 — beneficiary consent/release/ratification; MCL 700.7908 — Trust-term exculpation; MCL 700.7901 — court remedies, including an accounting order.
• MCL 700.7109 and 700.7301–700.7305 — suitable delivery and authorized representation.
• MCL 700.7203 and 700.7204 — subject-matter jurisdiction and venue; MCL 700.7802(5) — qualifying investment-service compensation disclosure.