Annual Trust Accounting (Nevada NRS § 165.135 and NRS Chapter 165)

ANNUAL TRUST ACCOUNTING

Pursuant to Nevada Revised Statutes § 165.135 and NRS Chapter 165

I. TRUST IDENTIFICATION

II. TRUSTEE IDENTIFICATION

III. CURRENT BENEFICIARIES RECEIVING THIS ACCOUNT (NRS § 165.020(d); NRS § 165.1207)

IV. SUMMARY OF ACCOUNT (NRS § 165.135)

V. SCHEDULE OF RECEIPTS (NRS § 165.135)

A. Income Receipts

B. Principal Receipts

VI. SCHEDULE OF DISBURSEMENTS (NRS § 165.135)

A. Ordinary Administration Expenses

B. Distributions to Beneficiaries

C. Taxes

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

VIII. ENDING STATEMENT OF ASSETS (NRS § 165.135) (As of [__/__/____])

IX. STATEMENT OF LIABILITIES (NRS § 165.135)

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

X. TRUSTEE AND AGENT COMPENSATION (NRS § 165.135)

A. Trustee Compensation

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. STATUTORY ACKNOWLEDGMENT — THREE-YEAR LIMITATION ON CLAIMS (NRS § 11.207)

NOTICE TO BENEFICIARIES — THREE-YEAR LIMITATION ON CLAIMS

Any action by a beneficiary against the Trustee for breach of trust based on facts adequately disclosed in this account must be commenced within three (3) years from the date this account is received by the beneficiary, as provided by Nevada Revised Statutes § 11.207 and applicable law. Failure to commence such action within that period may permanently bar the claim.

XII. NOTICE OF DEEMED APPROVAL AND OBJECTION PERIOD (NRS § 165.1214)

NOTICE TO BENEFICIARIES — OBJECTION PERIOD

UNDER NEVADA REVISED STATUTES § 165.1214(4)(a), A BENEFICIARY WHO RECEIVED A COPY OF THIS ACCOUNT HAS 90 DAYS AFTER THE DATE ON WHICH THE TRUSTEE PROVIDED THE ACCOUNT TO DELIVER A WRITTEN OBJECTION TO THE TRUSTEE IN ACCORDANCE WITH § 165.1214(2). IF NO WRITTEN OBJECTION IS DELIVERED WITHIN THAT 90-DAY PERIOD, THE ACCOUNT IS DEEMED APPROVED AND FINAL BY THAT BENEFICIARY. ABSENT FRAUD OR INTENTIONAL MISREPRESENTATION, THE TRUSTEE IS THEN RELEASED AND DISCHARGED FROM LIABILITY TO THAT BENEFICIARY AS TO MATTERS SET FORTH IN THE ACCOUNT.

Objection Deadline: [__/__/____]

XIII. RIGHT TO PETITION NEVADA DISTRICT COURT FOR REVIEW (NRS § 153.031; NRS § 165.143)

You are hereby notified that, as a recipient of this account, you may petition the Nevada District Court (the Probate Department in Clark and Washoe Counties) for review of this account and of the acts of the Trustee. Available petitions include, without limitation:

• NRS § 153.031: Petition for instructions, settlement of accounts, removal of trustee, surcharge, construction of the trust, and other trust-administration relief;
• NRS § 165.143: Petition to review the Trustee's rejection of a written demand for an account (must be filed within 60 days of rejection);
• NRS § 165.148: Action for personal liability of the Trustee for failure to provide an account; and
• NRS § 164.015: Petition concerning the internal affairs of a nontestamentary trust.

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

XIV. OPTIONAL — BENEFICIARY RECEIPT, RELEASE, AND RATIFICATION (NRS § 165.121)

I, the undersigned beneficiary, having received and reviewed the foregoing Annual Trust Accounting for the accounting period from [__/__/____] through [__/__/____], and being fully informed of my rights under NRS Chapter 165, including the right to object, to demand additional information, and to petition the District Court for review, hereby:

1. Acknowledge receipt of the Annual Trust Accounting;
2. Approve and ratify all acts, transactions, distributions, expenses, and compensation set forth in the account;
3. Release and discharge the Trustee, its successors, agents, and assigns from any and all claims, demands, surcharges, and causes of action arising out of any matter adequately disclosed in this account, to the fullest extent permitted by NRS § 165.121; and
4. Waive any objection to this account.

This Receipt, Release, and Ratification is executed voluntarily, with full knowledge of the material facts disclosed in this account.

Beneficiary Signature: [________________________________]

Print Name: [________________________________]

Date: [__/__/____]

State of Nevada / County of [____________________]

Subscribed and sworn to before me on [__/__/____] by [____________________].

Notary Public: [________________________________]

My commission expires: [__/__/____]

XV. NEVADA ASSET PROTECTION TRUST (NAPT) DISCLOSURE (IF APPLICABLE)

☐ Not Applicable. This Trust is not a self-settled spendthrift trust under NRS Chapter 166.

☐ Applicable. This Trust is a Nevada Asset Protection Trust (self-settled spendthrift trust) under NRS Chapter 166. Beneficiaries are reminded that:

• NRS § 166.170 establishes a two-year statute of limitations (the shortest of any U.S. domestic asset-protection-trust jurisdiction) for any creditor action against a transfer to this Trust, running from the date of the transfer, with no exception creditors under Nevada law;
• The Trust is required to maintain at least one Nevada qualified trustee under NRS § 166.015(2);
• Distribution decisions of the Trustee remain subject to the standards of NRS Chapter 166 and the Trust instrument.

XVI. TRUSTEE VERIFICATION AND SIGNATURE

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

1. I have reviewed the foregoing Annual Trust 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; and
4. This accounting is furnished pursuant to NRS § 165.135 and NRS Chapter 165.

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

Trustee Signature: [________________________________]

Print Name: [________________________________]

Capacity: [________________________________]

State of Nevada / County of [____________________]

Subscribed and sworn to before me on [__/__/____] by [____________________].

Notary Public: [________________________________]

My commission expires: [__/__/____]

XVII. 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 TRUST ACCOUNTING 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 [____________________], Nevada, OR by personal delivery as indicated.

Method of service used:

☐ Certified mail, return receipt requested

☐ Registered mail

☐ First-class mail, postage prepaid

☐ Personal delivery

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

Date: [__/__/____]

Signature: [________________________________]

Print Name: [________________________________]

Address: [________________________________]

SOURCES AND REFERENCES

• NRS Chapter 165 (Trustees' Accounting — Uniform Trustees' Accounting Act) — https://www.leg.state.nv.us/nrs/nrs-165.html
• NRS § 165.135 (Form and Contents of Account) — https://law.justia.com/codes/nevada/chapter-165/statute-165-135/
• NRS § 165.1207 (Persons Entitled to Receive Account) — https://www.leg.state.nv.us/nrs/nrs-165.html
• NRS § 165.121 (Waiver of Right to Receive Account) — https://www.leg.state.nv.us/nrs/nrs-165.html
• NRS § 165.1214 (Delivery of Account; Frequency; Deemed Approval) — https://www.leg.state.nv.us/nrs/nrs-165.html
• NRS § 165.138 (Written Demand for Account) — https://www.leg.state.nv.us/nrs/nrs-165.html
• NRS § 165.143 (Petition to Review Rejection of Demand) — https://www.leg.state.nv.us/nrs/nrs-165.html
• NRS § 165.148 (Personal Liability of Trustee) — https://www.leg.state.nv.us/nrs/nrs-165.html
• NRS § 153.031 (Petition Regarding Trusts) — https://www.leg.state.nv.us/nrs/nrs-153.html
• NRS § 11.207 (Three-Year SOL for Breach of Trust Claims Adequately Disclosed) — https://www.leg.state.nv.us/nrs/nrs-011.html
• NRS § 11.190 (General Periods of Limitation) — https://www.leg.state.nv.us/nrs/nrs-011.html
• NRS Chapter 166 (Spendthrift Trust Act of Nevada / NAPT) — https://www.leg.state.nv.us/nrs/nrs-166.html
• NRS § 166.170 (Two-Year SOL on Creditor Actions Against NAPT Transfers) — https://www.leg.state.nv.us/nrs/nrs-166.html
• NRS §§ 164.780–164.925, within NRS Chapter 164 (Nevada Uniform Principal and Income Act) — https://www.leg.state.nv.us/nrs/nrs-164.html