Annual Trust Accounting / Trustee's Report (Mont. Code § 72-38-813(3)) - Montana

ANNUAL TRUSTEE'S REPORT AND ACCOUNTING

Pursuant to Mont. Code Ann. § 72-38-813(3)

I. TRUST IDENTIFICATION

II. TRUSTEE IDENTIFICATION

III. RECIPIENTS OF THIS REPORT (§ 72-38-813(3))

A. Distributees and Permissible Distributees (Mandatory Recipients)

B. Other Qualified Beneficiaries Receiving on Request

C. Representatives Receiving on Behalf of Qualified Beneficiaries (§§ 72-38-301 to 72-38-305)

IV. SUMMARY OF ACCOUNT

V. SCHEDULE OF RECEIPTS (§ 72-38-813(3))

A. Income Receipts

B. Principal Receipts

VI. SCHEDULE OF DISBURSEMENTS (§ 72-38-813(3))

A. Ordinary Administration Expenses

B. Distributions to Beneficiaries

C. Taxes Paid

VII. STARTING STATEMENT OF ASSETS (As of [__/__/____])

VIII. ENDING STATEMENT OF ASSETS — § 72-38-813(3) ASSET LISTING (As of [__/__/____])

IX. STATEMENT OF LIABILITIES (§ 72-38-813(3))

☐ The Trust has no outstanding liabilities as of the end of the accounting period.

X. TRUSTEE COMPENSATION AND AGENTS HIRED

A. Trustee Compensation (§ 72-38-813(3); § 72-38-708)

B. Agents Hired by Trustee

C. Related-Party Transactions

☐ 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. APPLICABLE TAX RETURNS (§ 72-38-813(3))

Upon written request, the Trustee will furnish a qualified beneficiary with copies of any applicable income, estate, or transfer tax returns relevant to the administration of the Trust for the accounting period, as required by Mont. Code Ann. § 72-38-813(3). The following returns were filed for the period:

XII. LIMITATION NOTICE — MONT. CODE ANN. § 72-38-1005

NOTICE TO QUALIFIED BENEFICIARIES UNDER MONT. CODE ANN. § 72-38-1005:

A BENEFICIARY MAY NOT COMMENCE A PROCEEDING AGAINST THE TRUSTEE FOR BREACH OF TRUST MORE THAN THREE (3) YEARS AFTER THE DATE THE BENEFICIARY OR A REPRESENTATIVE OF THE BENEFICIARY WAS SENT A REPORT THAT ADEQUATELY DISCLOSED THE EXISTENCE OF A POTENTIAL CLAIM FOR BREACH OF TRUST AND INFORMED THE BENEFICIARY OF THE TIME ALLOWED FOR COMMENCING A PROCEEDING.

THIS REPORT IS INTENDED TO ADEQUATELY DISCLOSE ALL MATERIAL FACTS RELATING TO THE TRUSTEE'S ADMINISTRATION OF THE TRUST DURING THE ACCOUNTING PERIOD STATED ABOVE. ANY CLAIM YOU WISH TO ASSERT AGAINST THE TRUSTEE BASED ON ANY ITEM ADEQUATELY DISCLOSED IN THIS REPORT MUST BE COMMENCED IN A JUDICIAL PROCEEDING WITHIN THREE (3) YEARS OF THE DATE THIS REPORT WAS SENT TO YOU. THE DATE THIS REPORT IS SENT IS THE DATE STATED IN THE PROOF OF SERVICE BELOW.

IF YOU HAVE QUESTIONS, OBJECTIONS, OR REQUEST FOR ADDITIONAL INFORMATION ABOUT ANY ITEM IN THIS REPORT, YOU ARE ENCOURAGED TO CONTACT THE TRUSTEE AT THE ADDRESS STATED IN SECTION II BEFORE THE EXPIRATION OF THE LIMITATIONS PERIOD STATED ABOVE.

XIII. BENEFICIARY OBJECTION MECHANISM AND RIGHT TO PETITION DISTRICT COURT

You are notified that, as a qualified beneficiary, you may petition the Montana District Court for the county that is the principal place of administration of the Trust, pursuant to Mont. Code Ann. § 72-38-201 (subject matter jurisdiction), § 72-38-202 (powers of court), and § 72-38-205 (venue), to obtain judicial review of this Report and of the acts of the Trustee, including without limitation:

• § 72-38-202 (powers of court) read with § 72-38-813: Reviewing and settling the accounts of the trustee;
• § 72-38-1001(2): Surcharging the trustee for breach of trust;
• § 72-38-706: Removing the trustee;
• § 72-38-410 to § 72-38-416: Modifying or terminating the Trust; and
• Any other relief authorized by the Montana Uniform Trust Code.

A petition is filed in the Montana District Court for the county where the principal place of administration of the Trust is located.

Informal Objection Procedure (Non-Statutory). A beneficiary who has questions or objections to any item in this Report is encouraged (but not required) to submit them in writing to the Trustee within [____] days of receipt at the address in Section II. This informal step does not extend, shorten, or substitute for the limitations period stated in Section XII.

XIV. OPTIONAL — BENEFICIARY RECEIPT, RELEASE, AND RATIFICATION (§ 72-38-1009)

The undersigned beneficiary, having received and reviewed this Annual Trustee's Report and Accounting, and having had a reasonable opportunity to ask questions and to consult with independent counsel, hereby:

1. Acknowledges Receipt of this Report and the supporting schedules and statements;
2. Approves and Ratifies the acts of the Trustee disclosed in this Report for the accounting period stated above;
3. Releases the Trustee from any and all claims, demands, causes of action, and liabilities arising out of any act, omission, transaction, or item adequately disclosed in this Report, to the extent permitted by Mont. Code Ann. § 72-38-1009; and
4. Acknowledges that under § 72-38-1009 this Release does not protect the Trustee if it was induced by the Trustee's improper conduct or if, when signing, the Beneficiary did not know the Beneficiary's rights or the material facts relating to the breach. This Release also does not cover matters outside its express scope.

Beneficiary Signature: [________________________________]

Print Name: [________________________________]

Date: [__/__/____]

☐ Not Applicable — no Receipt and Release is requested with this Report.

XV. TRUSTEE VERIFICATION AND SIGNATURE

I, the undersigned Trustee, declare under penalty of perjury under the laws of the State of Montana:

1. I have reviewed the foregoing Annual Trustee's Report and 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;
4. This Report is intended to satisfy the duty of the Trustee to inform and report under Mont. Code Ann. § 72-38-813; and
5. The statutory limitation notice in Section XII is provided to invoke the 3-year limitations period of Mont. Code Ann. § 72-38-1005(1) as to all matters adequately disclosed herein.

Executed on [__/__/____] at [____________________], Montana.

Trustee Signature: [________________________________]

Print Name: [________________________________]

Capacity: [________________________________]

XVI. PROOF OF SERVICE

I, the undersigned, declare that I am over the age of 18 years and not a party to this matter. My business or residence address is set forth below. On the date stated below, I served the foregoing ANNUAL TRUSTEE'S REPORT AND ACCOUNTING on each qualified beneficiary identified in Section III by placing a true copy in a sealed envelope addressed to each such beneficiary at the address set forth in Section III, with postage thereon fully prepaid, and depositing the envelope in the United States Mail at [____________________], Montana, OR by personal delivery / other method reasonably calculated to give actual notice as indicated.

I declare under penalty of perjury under the laws of the State of Montana that the foregoing is true and correct.

Date of Sending (relevant to § 72-38-1005 only for potential claims adequately disclosed by this Report): [__/__/____]

Signature: [________________________________]

Print Name: [________________________________]

Address: [________________________________]

SOURCES AND REFERENCES

• Mont. Code Ann. §§ 72-38-103 and 72-38-105 — definitions and default/mandatory rules: https://leg.mt.gov/bills/mca/title_0720/chapter_0380/part_0010/sections_index.html
• Mont. Code Ann. §§ 72-38-201, 72-38-202, and 72-38-205 — subject matter jurisdiction, court powers, and venue: https://leg.mt.gov/bills/mca/title_0720/chapter_0380/part_0020/sections_index.html
• Mont. Code Ann. §§ 72-38-706 and 72-38-708 — trustee removal and compensation: https://leg.mt.gov/bills/mca/title_0720/chapter_0380/part_0070/sections_index.html
• Mont. Code Ann. § 72-38-813 — duty to inform and report: https://leg.mt.gov/bills/mca/title_0720/chapter_0380/part_0080/section_0130/0720-0380-0080-0130.html
• Mont. Code Ann. §§ 72-38-1001, 72-38-1005, and 72-38-1009 — remedies, limitation period, and beneficiary consent/release/ratification: https://leg.mt.gov/bills/mca/title_0720/chapter_0380/part_0100/sections_index.html