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. RECIPIENTS — QUALIFIED TRUST BENEFICIARIES

This accounting is being delivered to each of the following qualified trust
beneficiaries and other persons entitled to a report under
MCL § 700.7814(3):

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 (Realized Gains, Contributions, Other)

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)

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.

This Annual Trust Accounting and Trustee's Report constitutes such a report.
It is intended by the trustee to disclose all material information regarding
the administration of the Trust during the accounting period and to provide
each recipient with sufficient information to know of, or to inquire into
the existence of, any potential claim for breach of trust.

ACCORDINGLY, IF YOU INTEND TO ASSERT ANY CLAIM AGAINST THE TRUSTEE FOR
BREACH OF TRUST BASED ON ANY MATTER DISCLOSED OR REASONABLY INFERABLE FROM
THIS REPORT, YOU MUST COMMENCE A JUDICIAL PROCEEDING WITHIN ONE (1) YEAR
AFTER THE DATE THIS REPORT WAS SENT TO YOU. FAILURE TO COMMENCE A
PROCEEDING WITHIN THAT ONE-YEAR PERIOD MAY BAR THE CLAIM UNDER
MCL § 700.7905(1)(a).

If the foregoing one-year period does not apply (for example, because this
report did not adequately disclose the existence of a potential claim),
MCL § 700.7905(3) provides a residual five-year (5) period running from the
first to occur of (i) the trustee's removal, resignation, or death,
(ii) the termination of your interest in the Trust, or (iii) the termination
of the Trust.

A trust beneficiary who has waived the right to receive reports pursuant to
MCL § 700.7814(5) shall not commence a proceeding for breach of trust more
than one (1) year after the end of the calendar year in which the
alleged breach occurred. MCL § 700.7905(1)(b).

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 a judicial proceeding in the Michigan probate court for
   the county of [________________________________] (the principal place
   of administration of the Trust) pursuant to MCL § 700.7203, MCL
   § 700.1302(b), and MCL § 700.7201 et seq., subject to the limitations
   period set forth in Section IX above.

XI. RECEIPT, APPROVAL, AND RELEASE BY BENEFICIARY (Optional)

The undersigned beneficiary acknowledges and certifies the following:

1. I have received a complete copy of the foregoing Annual Trust Accounting
   and Trustee's Report for the accounting period stated in Section II;

2. I have read and understand the Report, including the notice of the
   one-year limitation period set forth in Section IX;

3. I have had the opportunity to review the Report with counsel and other
   advisors of my own choosing;

4. I APPROVE AND CONFIRM all acts, transactions, valuations,
   distributions, and disbursements set forth in the Report;

5. I RELEASE AND DISCHARGE the trustee, and the trustee's agents,
   attorneys, accountants, and other representatives, from any and all
   liability, claims, demands, or causes of action arising out of or
   relating to any matter disclosed in, or reasonably inferable from, the
   Report, except for liability that may not be released under
   MCL § 700.7901(2)(d) or MCL § 700.7908; and

6. This Receipt, Approval, and Release is given freely and voluntarily, is
   not the product of any improper conduct of the trustee, and is given
   with full knowledge of my rights as a beneficiary and of the material
   facts disclosed in the Report.

XII. TRUSTEE VERIFICATION

I, the undersigned trustee, verify under penalty of perjury under the laws
of the State of Michigan 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. This Report is intended to satisfy the disclosure requirements of
   MCL § 700.7905(1)(a) and (2) so as to commence the one-year limitation
   period for any breach-of-trust claim arising from a matter disclosed
   in, or reasonably inferable from, this Report.

XIII. PROOF OF SERVICE

I declare under penalty of perjury under the laws of the State of Michigan
that on the date stated above I served a true and complete copy of this
Annual Trust Accounting and Trustee's Report on the recipient identified
above by the method indicated.

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

SOURCES AND REFERENCES

• Michigan Estates and Protected Individuals Code (EPIC), Act 386 of 1998,
  Article VII — Michigan Trust Code: MCL §§ 700.7101 – 700.7913.

• MCL § 700.7814(3) — Annual trustee's report content: property,
  liabilities, receipts, disbursements, trustee compensation, market values.

• MCL § 700.7814(5) — Beneficiary waiver and withdrawal of waiver of
  reports.

• MCL § 700.7905(1)(a) — One-year statute of limitations following
  delivery of report adequately disclosing potential breach-of-trust claim
  and informing beneficiary of time allowed.

• MCL § 700.7905(1)(b) — One-year SOL for beneficiary who waived reports.

• MCL § 700.7905(2) — Adequacy-of-disclosure standard.
• MCL § 700.7905(3) — Residual 5-year limitations period.

• MCL § 700.7908 — Beneficiary's consent, release, or ratification of
  trustee conduct.

• MCL § 700.7901(2)(d) — Limits on enforceability of exculpation
  clauses and releases.

• MCL § 700.7105 — Mandatory provisions; non-waivable trustee duties.

• MCL § 700.7103(g) — Definition of "qualified trust beneficiary."
• MCL § 700.7807 — Delegation of duties and powers by trustee.

• MCL § 700.1302(b); MCL § 700.7201 et seq. — Probate court
  jurisdiction over trust proceedings.

• Kilian v. TCF National Bank, No. 358761 (Mich. Ct. App. Oct. 20, 2022)
  (interpreting MCL § 700.7905 limitation-notice requirements).