Annual Trust Accounting (New Jersey)

ANNUAL TRUSTEE'S REPORT AND ACCOUNTING

Trustee report under N.J.S.A. 3B:31-67(c), with conditional N.J.S.A. 3B:31-74(a) notice

N.J.S.A. 3B:31-67 does not require an annual report. Subsection (c) permits a trustee seeking the protection of N.J.S.A. 3B:31-74 to provide a report containing the categories used in this form. Confirm separately whether the trust instrument, a court order, settlement, or another authority requires periodic accounting.

1. TRUST IDENTIFICATION

2. ACCOUNTING PERIOD

3. BENEFICIARIES AND REPRESENTATIVES TO WHOM REPORT IS SENT

4. SUMMARY OF ACCOUNTING

Reconciliation: Beginning principal and income + external receipts − disbursements − beneficiary distributions − trustee and agent compensation + net asset-value change = ending principal and income. Do not count transfers between Trust accounts or sale proceeds from an existing Trust asset as new external receipts. Unexplained difference and corrective entry: [________________________________].

5. SCHEDULE A — BEGINNING TRUST PROPERTY

Statement of trust property held at the start of the accounting period. N.J.S.A. 3B:31-67(c) identifies a listing of trust assets and, if feasible, their market values as contents of a discretionary report.

6. SCHEDULE B — ENDING TRUST PROPERTY

Statement of all trust property held at the close of the accounting period.

7. SCHEDULE B-1 — TRUST LIABILITIES

Statement of trust liabilities included in the discretionary report described by N.J.S.A. 3B:31-67(c).

8. SCHEDULE C — RECEIPTS

Record external receipts of income and principal with their sources. Record a sale of an existing Trust asset in Schedule F and the related cash movement in the asset reconciliation; do not add both the full sale proceeds here and the gain in line 8 of the summary.

9. SCHEDULE D — DISBURSEMENTS

All disbursements of income and principal during the accounting period (excluding distributions to beneficiaries, which are on Schedule E, and trustee/agent compensation, on Schedule G).

10. SCHEDULE E — DISTRIBUTIONS TO BENEFICIARIES

11. SCHEDULE F — CHANGES IN INVESTED ASSETS

Realized gains and losses on sales of Trust assets, and other adjustments to invested principal. Reconcile an asset sale to cash received and the asset removed without counting the same proceeds twice.

12. SCHEDULE G — TRUSTEE COMPENSATION

Source and amount of trustee compensation included in the discretionary report described by N.J.S.A. 3B:31-67(c).

13. SCHEDULE G-1 — AGENT, ATTORNEY, AND PROFESSIONAL COMPENSATION

14. SCHEDULE H — TRUSTEE DECISIONS AND MATERIAL TRANSACTIONS

15. CONDITIONAL LIMITATION NOTICE UNDER N.J.S.A. 3B:31-74

N.J.S.A. 3B:31-74(a) provides a six-month period, measured from the date a report was sent to a beneficiary with capacity or received by a representative who may bind a represented beneficiary, only for a potential breach-of-trust claim adequately disclosed by the report when the report also informs the recipient of the time allowed to commence a proceeding. Under subsection (b), disclosure is adequate only when the information lets the recipient know of the potential claim or puts the recipient on inquiry notice. This report's label or the statement below does not by itself establish adequate disclosure.

Potential claim and supporting facts disclosed in this report (identify schedule and transaction; do not leave blank if seeking subsection (a) protection): [________________________________]

Notice to recipient: If the identified facts adequately disclose a potential claim for breach of trust and this report was sent to you (or received by a representative who may bind you), N.J.S.A. 3B:31-74(a) may bar a proceeding commenced more than six months after the applicable date of sending or representative receipt. A written objection to the Trustee alone does not commence a judicial proceeding.

If subsection (a) does not apply, § 3B:31-74(c) measures a five-year period from the first of the Trustee's removal, resignation, or death; termination of the beneficiary's interest; or termination of the Trust. Its special protection for a beneficiary who has not attained majority or lacks knowledge of the Trust and beneficiary status must be assessed separately. Subsection (e) preserves an action for fraud or misrepresentation related to the report.

16. QUESTIONS, OBJECTIONS, AND PROCEEDINGS

A recipient may send questions or an objection identifying a transaction and supporting documents to the Trustee at [ADDRESS]. The Trustee's response contact is [NAME/ADDRESS]. This voluntary exchange does not extend or replace any applicable deadline to commence a proceeding under N.J.S.A. 3B:31-74. Consult counsel about the proper court and procedure for a claim.

17. ACKNOWLEDGMENT OF RECEIPT (OPTIONAL)

I acknowledge receiving this report, schedules, and any attached notice on [__/__/____]. My signature acknowledges receipt only; it does not approve the accounting or release, ratify, or waive any claim.

Beneficiary signature ______________________________ Printed name [________________________________]

18. TRUSTEE VERIFICATION

I, [____________________________], the trustee of the trust identified above, certify that:

1. I have caused this Annual Trustee's Report and Accounting to be prepared from the books and records of the trust maintained pursuant to N.J.S.A. 3B:31-64;
2. The information contained in this report, including all schedules, is true, correct, and complete to the best of my knowledge, information, and belief;
3. All material decisions, transactions, and matters affecting the interests of the qualified beneficiaries have been disclosed in this report;
4. The recipients and methods of transmission are recorded in Section 3, and the dates are recorded in the certificate below.

19. CERTIFICATE OF TRANSMISSION

I, [____________________________], certify that on [__/__/____], I sent a true and correct copy of the foregoing Annual Trustee's Report and Accounting, including all schedules and the Limitation Notice under N.J.S.A. 3B:31-74, on each recipient identified in Section 3, by the method indicated therein. Evidence of transmission, if available, is retained in the trust file: [________________________________].

SOURCES AND REFERENCES

• New Jersey Legislature, N.J.S.A. 3B:31-64, recordkeeping.
• New Jersey Legislature, N.J.S.A. 3B:31-67, disclosure and discretionary report.
• New Jersey Legislature, N.J.S.A. 3B:31-74, limitation of action.