Annual Trust Accounting (Missouri)

ANNUAL TRUSTEE'S REPORT AND ACCOUNTING

(Pursuant to Missouri Revised Statutes § 456.8-813(3))

TABLE OF CONTENTS

1. Statutory Authority and Purpose
2. Trust Identification
3. Trustee and Beneficiary Identification
4. Accounting Period
5. Schedule A — Trust Assets (Carrying Value and Fair Market Value)
6. Schedule B — Trust Liabilities
7. Schedule C — Receipts
8. Schedule D — Disbursements
9. Schedule E — Distributions to Beneficiaries
10. Schedule F — Trustee Compensation
11. Schedule G — Agent, Custodian, and Professional Compensation
12. Schedule H — Reconciliation and Ending Balance
13. Material Events and Disclosures
14. Section 456.10-1005 Limitation Notice (1-Year Statute of Limitations)
15. Beneficiary Objection Mechanism
16. Receipt, Release, Ratification, and Consent (§ 456.10-1009)
17. Trustee Verification
18. Proof of Service

1. STATUTORY AUTHORITY AND PURPOSE

This Annual Trustee's Report and Accounting (this "Accounting") is furnished pursuant to Missouri Revised Statutes § 456.8-813(3), which is part of the Missouri Uniform Trust Code, RSMo § 456.1-101 et seq. The undersigned Trustee provides this Accounting to discharge the mandatory duty to report annually to the qualified beneficiaries of the Trust identified herein.

This Accounting is also intended, when accompanied by the limitation notice in Section 14 below, to commence the one-year statute of limitations under RSMo § 456.10-1005(1) with respect to any matter adequately disclosed in this Accounting.

2. TRUST IDENTIFICATION

Type of Trust:

☐ Revocable Living Trust (now irrevocable upon settlor's death)
☐ Irrevocable Living Trust
☐ Testamentary Trust
☐ Missouri Qualified Spousal Trust under RSMo § 456.950
☐ Missouri Qualified Spendthrift Trust (DAPT) under RSMo § 456.5-505
☐ Special Needs / Supplemental Needs Trust
☐ Charitable Remainder Trust
☐ Other: [________________________________]

3. TRUSTEE AND BENEFICIARY IDENTIFICATION

Currently Acting Trustee:

Co-Trustee(s) (if any): [________________________________]

Recipient (Qualified Beneficiary or Permissible Distributee):

4. ACCOUNTING PERIOD

5. SCHEDULE A — TRUST ASSETS (CARRYING VALUE AND FAIR MARKET VALUE)

Beginning Balance (Period Begin): $[________________________________]

Total Carrying Value: $[________________________________]
Total Fair Market Value at Period End: $[________________________________]

6. SCHEDULE B — TRUST LIABILITIES

Total Liabilities at Period End: $[________________________________]

Net Trust Equity (Total FMV minus Total Liabilities): $[________________________________]

7. SCHEDULE C — RECEIPTS

Total Income Receipts: $[________________________________]
Total Principal Receipts: $[________________________________]
Total Receipts: $[________________________________]

8. SCHEDULE D — DISBURSEMENTS

Total Income Disbursements: $[________________________________]
Total Principal Disbursements: $[________________________________]
Total Disbursements: $[________________________________]

9. SCHEDULE E — DISTRIBUTIONS TO BENEFICIARIES

Total Distributions: $[________________________________]

Discretionary Distribution Standards Applied (if applicable):

☐ HEMS (Health, Education, Maintenance, and Support)
☐ Sole and absolute discretion
☐ Mandatory income distribution
☐ Unitrust amount under RSMo § 469.411
☐ Other: [________________________________]

10. SCHEDULE F — TRUSTEE COMPENSATION

Total Trustee Compensation for Period: $[________________________________]

Change in Method/Rate of Compensation During Period:

☐ None
☐ Yes — date notified to qualified beneficiaries: [__/__/____]; description of change: [________________________________]

11. SCHEDULE G — AGENT, CUSTODIAN, AND PROFESSIONAL COMPENSATION

Total Agent / Professional Fees for Period: $[________________________________]

12. SCHEDULE H — RECONCILIATION AND ENDING BALANCE

13. MATERIAL EVENTS AND DISCLOSURES

The following material events, transactions, or matters occurred during the Accounting Period and are disclosed for purposes of RSMo § 456.10-1005(2):

☐ Sale or purchase of significant Trust assets: [________________________________]
☐ Related-party or interested transactions (§ 456.8-802 conflicts): [________________________________]
☐ Departure from investment policy statement or prudent investor rule (§ 456.9-901 et seq.): [________________________________]
☐ Exercise of discretionary distribution authority: [________________________________]
☐ Retention of concentrated or underperforming asset positions: [________________________________]
☐ Delegation of investment or management functions under § 456.8-807: [________________________________]
☐ Trustee compensation method change: [________________________________]
☐ Litigation or claims involving the Trust: [________________________________]
☐ Tax events (audits, late filings, assessments): [________________________________]
☐ Other material matters: [________________________________]

14. SECTION 456.10-1005 LIMITATION NOTICE (1-YEAR STATUTE OF LIMITATIONS)

IMPORTANT NOTICE — STATUTE OF LIMITATIONS:

Under Missouri Revised Statutes § 456.10-1005(1), if you do not commence a judicial proceeding against the Trustee for any claim of breach of trust based on a matter adequately disclosed in this Accounting within ONE (1) YEAR after the date this Accounting is sent to you, that claim will be forever barred.

This Accounting is intended to adequately disclose the matters set forth herein for purposes of RSMo § 456.10-1005(2). If, after a reasonable review, you believe that any matter disclosed (or that should have been disclosed) constitutes a potential breach of trust, you must commence a judicial proceeding within one (1) year from the date this Accounting is sent to you.

Date This Accounting Is Sent to Beneficiary: [__/__/____]

Deadline to Commence Proceeding (One Year From Above): [__/__/____]

If the disclosure required by § 456.10-1005(1) is not provided or is inadequate, claims may be subject to the residual five-year limitations period under RSMo § 456.10-1005(3), running from the earliest of (a) removal, resignation, or death of the Trustee; (b) termination of the beneficiary's interest in the Trust; or (c) termination of the Trust.

15. BENEFICIARY OBJECTION MECHANISM

If you object to any matter disclosed in this Accounting, you may:

(a) Informal Objection. Submit a written objection to the Trustee at the address in Section 3, identifying with specificity the items or transactions to which you object and the basis for your objection. The Trustee will respond within thirty (30) days.

(b) Formal Petition. Commence a judicial proceeding in the Circuit Court of [________________________________] County, Missouri, Probate Division (or the Circuit Court otherwise having venue under RSMo § 456.2-204) by filing a petition under RSMo § 456.2-201 et seq. (Judicial Proceedings) seeking, as applicable:

• Compelling a trustee to perform the trustee's duties (§ 456.10-1001(2)(1))
• Enjoining a trustee from committing a breach of trust (§ 456.10-1001(2)(2))
• Compelling a trustee to redress a breach of trust by paying money or restoring property (§ 456.10-1001(2)(3))
• Ordering a trustee to account (§ 456.10-1001(2)(4))
• Appointment of a special fiduciary or removal of the trustee (§ 456.10-1001(2)(5), (7); § 456.7-706)
• Reduction or denial of compensation (§ 456.10-1001(2)(8))

Venue Options:

16. RECEIPT, RELEASE, RATIFICATION, AND CONSENT (§ 456.10-1009)

(OPTIONAL — Beneficiary Signature)

I, the undersigned beneficiary, hereby acknowledge:

1. Receipt of the foregoing Annual Trustee's Report and Accounting for the period described in Section 4;
2. That I have had a reasonable opportunity to review the Accounting and to consult with independent counsel of my choosing;
3. That I have no objection to the matters disclosed in the Accounting;
4. Release and Discharge. Pursuant to RSMo § 456.10-1009, I hereby release, ratify, and discharge the Trustee from any and all claims, demands, and liabilities arising out of or related to the matters disclosed in this Accounting;
5. That this Release does not extend to matters not adequately disclosed in this Accounting or to matters undertaken in bad faith or with reckless indifference to the purposes of the Trust or interests of the beneficiaries.

17. TRUSTEE VERIFICATION

The undersigned Trustee declares under penalty of perjury under the laws of the State of Missouri that the foregoing Annual Trustee's Report and Accounting is true and correct to the best of the Trustee's knowledge, information, and belief; that it has been prepared from the books and records of the Trust maintained in the ordinary course of trust administration; and that it complies with the requirements of RSMo § 456.8-813(3).

STATE OF MISSOURI
COUNTY OF [________________________________]

On this [__] day of [________________], 20[__], before me, the undersigned Notary Public, personally appeared [________________________________], who acknowledged executing the foregoing Annual Trustee's Report and Accounting for the purposes therein set forth.

Notary Public Signature: [________________________________]
My Commission Expires: [__/__/____]
Notary Seal

18. PROOF OF SERVICE

I, [________________________________], hereby certify that on [__/__/____], I served a true and correct copy of the foregoing Annual Trustee's Report and Accounting on the following beneficiary (or representative thereof) by the method indicated:

Signature of Person Serving Accounting: [________________________________]
Date: [__/__/____]

Attachments:

☐ Certified Mail Return Receipt
☐ Acknowledgment of Receipt signed by Recipient
☐ Affidavit of Service
☐ Supporting documentation (account statements, appraisals, tax returns)
☐ Receipt and Release (executed copy)

SOURCES AND REFERENCES

• Mo. Rev. Stat. § 456.8-813 (Duty to Inform and Report), https://revisor.mo.gov/main/OneSection.aspx?section=456.8-813
• Mo. Rev. Stat. § 456.10-1005 (Limitation of Action Against Trustee), https://revisor.mo.gov/main/OneSection.aspx?section=456.10-1005
• Mo. Rev. Stat. § 456.10-1008 (Exculpation of Trustee)
• Mo. Rev. Stat. § 456.10-1009 (Beneficiary's Consent, Release, or Ratification)
• Mo. Rev. Stat. § 456.7-708 (Trustee's Compensation)
• Mo. Rev. Stat. § 456.10-1001 (Remedies for Breach of Trust)
• Mo. Rev. Stat. § 456.950 (Qualified Spousal Trust)
• Mo. Rev. Stat. § 456.5-505 (Qualified Spendthrift Trust — Missouri DAPT)
• Mo. Rev. Stat. Chapter 469 (Principal and Income Act)
• Gould v. Gould, WD69563 (Mo. App. W.D. 2009) — applying § 456.10-1005

END OF ANNUAL TRUSTEE'S REPORT AND ACCOUNTING