Annual Trust Accounting (North Dakota Uniform Trust Code, N.D.C.C. § 59-16-13)

ANNUAL ACCOUNTING BY TRUSTEE

Pursuant to North Dakota Uniform Trust Code, N.D.C.C. § 59-16-13(2)(f)

I. TRUST IDENTIFICATION

II. TRUSTEE IDENTIFICATION

III. BENEFICIARIES RECEIVING THIS ACCOUNT (§ 59-16-13(2)(f))

IV. SUMMARY OF ACCOUNT

V. SCHEDULE OF RECEIPTS (§ 59-16-13(2)(f))

A. Income Receipts

B. Principal Receipts

VI. SCHEDULE OF DISBURSEMENTS (§ 59-16-13(2)(f))

A. Ordinary Administration Expenses

B. Distributions to Beneficiaries

C. Taxes

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

VIII. ENDING STATEMENT OF ASSETS (§ 59-16-13(2)(f)) (As of [__/__/____])

IX. STATEMENT OF LIABILITIES (§ 59-16-13(2)(f))

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

X. TRUSTEE COMPENSATION AND AGENTS HIRED

A. Trustee Compensation (§ 59-16-13(2)(f))

☐ No change in method or rate of trustee compensation occurred during the accounting period.

☐ The method or rate of trustee compensation changed during the period; details of the change were separately noticed under § 59-16-13(2)(e) on [__/__/____].

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. (See § 59-16-02 — Duty of Loyalty.)

☐ The following related-party transactions occurred during the accounting period and are fully disclosed for the beneficiaries' review:

[____________________________________________________________]

[____________________________________________________________]

XI. LIMITATIONS NOTICE — ONE YEAR TO COMMENCE ACTION FOR BREACH OF TRUST (N.D.C.C. § 59-18-05(1))

IMPORTANT NOTICE PURSUANT TO N.D.C.C. § 59-18-05(1):

YOU MAY NOT COMMENCE A PROCEEDING AGAINST THE TRUSTEE FOR BREACH OF TRUST MORE THAN ONE (1) YEAR AFTER THE DATE THIS REPORT IS SENT TO YOU (OR TO A REPRESENTATIVE OF YOU UNDER N.D.C.C. CHAPTER 59-11), IF THIS REPORT ADEQUATELY DISCLOSES THE EXISTENCE OF A POTENTIAL CLAIM FOR BREACH OF TRUST. A REPORT ADEQUATELY DISCLOSES THE EXISTENCE OF A POTENTIAL CLAIM FOR BREACH OF TRUST IF IT PROVIDES SUFFICIENT INFORMATION SO THAT YOU (OR YOUR REPRESENTATIVE) KNOW OF THE POTENTIAL CLAIM OR SHOULD HAVE INQUIRED INTO ITS EXISTENCE. IF YOU BELIEVE THAT THIS REPORT DOES NOT ADEQUATELY DISCLOSE A POTENTIAL CLAIM, OR IF YOU HAVE ANY QUESTIONS OR CONCERNS REGARDING ANY ITEM DISCLOSED, YOU SHOULD CONSULT WITH AN ATTORNEY OR REQUEST ADDITIONAL INFORMATION FROM THE TRUSTEE PROMPTLY.

XII. RESIDUAL LIMITATIONS PERIOD (N.D.C.C. § 59-18-05(3))

To the extent the one-year period in Section XI does not apply, any judicial proceeding by a beneficiary against the Trustee for breach of trust must be commenced within FIVE (5) YEARS after the first to occur of: (a) the removal, resignation, or death of the Trustee; (b) the termination of the beneficiary's interest in the Trust; or (c) the termination of the Trust.

XIII. BENEFICIARY OBJECTION MECHANISM

A beneficiary who has questions or objections to any item disclosed in this Accounting is encouraged (but not required) to submit a written objection or inquiry to the Trustee within [____] days of receipt at the address in Section II.

Trustee Contact for Objections / Inquiries:

A beneficiary may also petition the District Court for [____________________] County, North Dakota, under the North Dakota Uniform Trust Code for an order: compelling the trustee to perform the trustee's duties; settling the trustee's accounts; surcharging the trustee for breach of trust; or other appropriate relief (see N.D.C.C. § 59-18-01).

XIV. RECEIPT, APPROVAL, AND RELEASE BY BENEFICIARY (N.D.C.C. § 59-18-09)

The undersigned beneficiary, having received and reviewed the foregoing Annual Accounting for the period stated in Section I, hereby:

☐ Approves and releases the Trustee from liability for all acts and omissions disclosed in this Accounting, pursuant to N.D.C.C. § 59-18-09. The undersigned acknowledges that this release is given voluntarily, with full knowledge of the material facts disclosed and the right to consult independent counsel.

☐ Objects to the following item(s) of this Accounting (attach written statement of objection):

[____________________________________________________________]

☐ Reserves decision pending further information requested from the Trustee.

Beneficiary Signature: [________________________________]

Print Name: [________________________________]

Date: [__/__/____]

XV. TRUSTEE VERIFICATION AND SIGNATURE

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

1. I have reviewed the foregoing Annual 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 maintained pursuant to N.D.C.C. § 59-16-10;
3. All material receipts, disbursements, assets, liabilities, trustee compensation, and material agents and transactions for the accounting period stated above have been disclosed; and
4. This Accounting is furnished pursuant to N.D.C.C. § 59-16-13(2)(f), and the limitations notice in Section XI is provided to commence the one-year period under N.D.C.C. § 59-18-05(1).

Executed on [__/__/____] at [____________________], North Dakota.

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 [__/__/____], I served the foregoing ANNUAL ACCOUNTING BY TRUSTEE on each 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 [____________________], North Dakota, OR by certified mail, return receipt requested, OR by personal delivery as indicated.

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

Date: [__/__/____]

Signature: [________________________________]

Print Name: [________________________________]

Address: [________________________________]

SOURCES AND REFERENCES

• N.D.C.C. § 59-16-13 (Duty to Inform and Report) — https://ndlegis.gov/cencode/t59c16.pdf
• N.D.C.C. § 59-16-10 (Recordkeeping and Identification of Trust Property) — https://ndlegis.gov/cencode/t59c16.pdf
• N.D.C.C. § 59-18-01 (Remedies for Breach of Trust) — https://ndlegis.gov/cencode/t59c18.pdf
• N.D.C.C. § 59-18-05 (Limitation of Action Against Trustee) — https://ndlegis.gov/cencode/t59c18.pdf
• N.D.C.C. § 59-18-08 (Exculpation of Trustee) — https://ndlegis.gov/cencode/t59c18.pdf
• N.D.C.C. § 59-18-09 (Beneficiary's Consent, Release, or Ratification) — https://ndlegis.gov/cencode/t59c18.pdf
• N.D.C.C. § 59-09-02 (Definitions) — https://ndlegis.gov/cencode/t59c09.pdf
• N.D.C.C. § 59-14-03 (Trustee Duties During Revocability of Trust) — https://ndlegis.gov/cencode/t59c14.pdf
• N.D.C.C. Chapter 59-17 (North Dakota Uniform Prudent Investor Act) — https://ndlegis.gov/cencode/t59c17.pdf
• N.D.C.C. § 30.1-01-06 (District Court Jurisdiction) — https://ndlegis.gov/cencode/t30-1c01.pdf