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)

Before sending: Confirm the reporting duty and recipients for the trust property under § 59-16-13(1)-(2), any waiver under subsection (2)(g), and any representation under chapter 59-11. Use this report for an annual, termination, or vacancy accounting as applicable. A separate notice of the one-year breach-of-trust period applies only to potential claims adequately disclosed in the completed report.

I. TRUST IDENTIFICATION

II. TRUSTEE IDENTIFICATION

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

IV. SUMMARY OF ACCOUNT

Use a consistent carrying-value basis for the opening balance, transactions, and ending balance. Show market values separately in the asset schedules where feasible. Explain noncash transfers and valuation changes in an attachment so the ending balance can be reconciled.

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. CLAIM-SPECIFIC LIMITATIONS NOTICE (N.D.C.C. § 59-18-05(1)-(2))

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

A beneficiary may not commence a proceeding against a trustee for breach of trust more than one year after a report is sent to the beneficiary or the beneficiary's representative if the report adequately discloses the potential claim and informs the beneficiary of this time limit. The one-year period applies only to a claim disclosed with enough information that the beneficiary or representative knows of the potential claim or should have inquired into it. Review the completed schedules and attachments before relying on this notice; this notice alone does not establish adequate disclosure.

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 seek a court order compelling the trustee to perform duties, requiring an accounting, or ordering relief for breach of trust under N.D.C.C. § 59-18-01. Venue for a trust proceeding is governed by § 59-10-04; the proper county depends on the trust's principal place of administration and, for an open testamentary trust, the estate's county.

XIV. OPTIONAL ACKNOWLEDGMENT OF RECEIPT

I acknowledge receipt of this accounting on [__/__/____]. My signature confirms receipt only; it does not approve the accounting, release the trustee, waive an objection, or change a statutory deadline. Any consent, release, or ratification under § 59-18-09 requires separate consideration of the conduct and material facts involved.

Beneficiary Signature: [________________________________]

Print Name: [________________________________]

Date: [__/__/____]

XV. TRUSTEE VERIFICATION AND SIGNATURE

I, the undersigned Trustee, confirm:

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). Whether Section XI starts a one-year period for any potential claim depends on the disclosure in this completed report and the requirements of § 59-18-05(1)-(2).

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

Trustee Signature: [________________________________]

Print Name: [________________________________]

Capacity: [________________________________]

XVI. TRUSTEE DELIVERY RECORD

I sent the completed accounting, schedules, and attachments to the recipients listed below by a method reasonably suitable and likely to result in receipt under § 59-09-09(1). Keep a copy of what was sent and the delivery evidence.

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. § 59-09-03 (Definitions) and § 59-09-09 (Notice) — 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. § 59-10-01 (Court role in trust administration) — https://ndlegis.gov/cencode/t59c10.pdf