Annual Trust Accounting (Oklahoma Trust Act, 60 O.S. § 175.57)

ANNUAL ACCOUNTING BY TRUSTEE

Pursuant to the Oklahoma Trust Act, 60 O.S. § 175.57

I. TRUST IDENTIFICATION

II. TRUSTEE IDENTIFICATION

Oklahoma-Based Trustee for Preservation Trusts (31 O.S. § 11):

☐ Not Applicable.

☐ Applicable — the following Oklahoma-based bank or trust company serves as required trustee or cotrustee: [____________________]

III. BENEFICIARIES RECEIVING THIS ACCOUNT

IV. SUMMARY OF ACCOUNT

V. SCHEDULE OF RECEIPTS

A. Income Receipts

B. Principal Receipts

VI. SCHEDULE OF DISBURSEMENTS

A. Ordinary Administration Expenses

B. Distributions to Beneficiaries

C. Taxes

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

VIII. ENDING INVENTORY OF ASSETS (As of [__/__/____])

Oklahoma Asset Compliance (Preservation Trusts Only):

☐ Not Applicable.

☐ Applicable — The Trustee certifies that a majority in value of the assets listed above are Oklahoma assets as defined by 31 O.S. § 11. Oklahoma-asset portion: $[____________] (representing [____]% of total fair market value).

IX. STATEMENT OF LIABILITIES

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

X. TRUSTEE COMPENSATION AND AGENTS HIRED

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 NOTICE — TWO-YEAR LIMITATION AND 180-DAY DEEMED APPROVAL (60 O.S. § 175.57)

NOTICE PURSUANT TO 60 O.S. § 175.57 — IMPORTANT — READ CAREFULLY

1. 180-DAY DEEMED APPROVAL. Pursuant to 60 O.S. § 175.57(B)(3), if no objection is made by a beneficiary who is an eligible distributee or permissible distributee of the Trust's income or principal within ONE HUNDRED EIGHTY (180) DAYS after the date this Accounting has been provided to such beneficiary together with this written notice, the distribution beneficiary shall be DEEMED to have approved this Accounting, and the Trustee, absent fraud, intentional misrepresentation, or material omission, shall be released and discharged from any and all liability to all beneficiaries of the Trust as to all matters set forth in this Accounting.

2. TWO-YEAR LIMITATION ON ACTIONS AGAINST OKLAHOMA-RESIDENT TRUSTEES (60 O.S. § 175.57(B)(4)). If paragraphs 2 and 3 of subsection B of 60 O.S. § 175.57 do not apply, absent fraud, intentional misrepresentation, or material omission, an action to recover for breach of trust against a Trustee who is a resident of this state or who has its principal place of business in this state, or an officer, director, or employee of such Trustee, may be commenced only within TWO (2) YEARS of a Trustee's accounting for the period of the breach. In the case of fraud, intentional misrepresentation, or material omission, the limitation period shall not commence until discovery of the breach of trust.

3. TWO-YEAR BAR ON CLAIMS ADEQUATELY DISCLOSED (60 O.S. § 175.57(E)(1)). Unless previously barred by adjudication, consent, or other limitation, a claim against the Trustee for breach of trust is BARRED as to a beneficiary who has received from the Trustee a report or other statement adequately disclosing the existence of the claim unless a judicial proceeding to assert the claim is commenced within TWO (2) YEARS after receipt of the report or statement. Where no report or statement is received, the two-year period runs from the termination of the trust relationship between the beneficiary and that particular Trustee. THIS ACCOUNTING IS A REPORT FOR PURPOSES OF 60 O.S. § 175.57(E)(1), AND THIS NOTICE INFORMS YOU OF THE TWO-YEAR TIME LIMITATION.

XII. NOTICE OF RIGHT TO PETITION THE DISTRICT COURT (60 O.S. § 175.23)

You are hereby notified that, under 60 O.S. § 175.23, the District Court of the county in which the Trust is administered has jurisdiction over the construction, interpretation, and administration of the Trust and the acts of the Trustee. A beneficiary may petition the District Court for, without limitation:

• An order compelling the Trustee to account or to perform the Trustee's duties (60 O.S. § 175.57(B)(1) & (4));
• An order enjoining a breach of trust or redressing a breach (60 O.S. § 175.57(B)(2) & (3));
• Approval of a court-filed accounting under 60 O.S. § 175.57(B)(2), the approval of which is conclusive against all interested persons absent fraud, intentional misrepresentation, or material omission;
• Suspension or removal of the Trustee, or reduction or denial of compensation (60 O.S. § 175.57(B)(6) & (7));
• An equitable lien, constructive trust, or trace of trust property (60 O.S. § 175.57(B)(8)); and
• Any other appropriate remedy (60 O.S. § 175.57(B)(9)).

In a judicial proceeding involving the Trust, the District Court may, in its discretion and as justice and equity may require, award costs and expenses, including reasonable attorney's fees, to any party, to be paid by another party or from the Trust which is the subject of the controversy (60 O.S. § 175.57(D)).

XIII. BENEFICIARY OBJECTION MECHANISM, RECEIPT, AND RELEASE

A. Beneficiary Objection Mechanism

A beneficiary who has questions or objections to any item in this Accounting must, in order to preserve the right to object, deliver a written objection to the Trustee at the address in Section II within ONE HUNDRED EIGHTY (180) DAYS of receipt of this Accounting. A beneficiary may also petition the District Court for relief at any time within the limitations periods stated in Section XI.

B. Optional Receipt and Release (for use with each consenting beneficiary)

I, the undersigned, am a beneficiary of the Trust identified in Section I. I acknowledge:

1. I have received a true and complete copy of the foregoing Accounting and the notices in Section XI;
2. I have had a reasonable opportunity to review the Accounting and to consult with counsel of my own choosing;
3. I approve the Accounting and release and discharge the Trustee from any and all liability arising from any act or omission disclosed by the Accounting, except for fraud, intentional misrepresentation, or material omission;
4. I acknowledge the two-year limitation periods stated in Section XI; and
5. I acknowledge receipt of the distributions described in Section VI(B) attributable to me.

Executed on [__/__/____].

Beneficiary Signature: [________________________________]

Print Name: [________________________________]

XIV. TRUSTEE VERIFICATION AND SIGNATURE

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

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;
3. All material receipts, disbursements, distributions, assets, liabilities, trustee compensation, and agents hired (including any related-party agents) for the accounting period stated above are disclosed;
4. This Accounting is furnished pursuant to the Oklahoma Trust Act, 60 O.S. § 175.57; and
5. The notices in Section XI have been delivered together with this Accounting in order to invoke the 180-day deemed-approval rule of 60 O.S. § 175.57(B)(3) and the two-year limitations periods of 60 O.S. § 175.57(B)(4) and (E)(1).

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

Trustee Signature: [________________________________]

Print Name: [________________________________]

Capacity: [________________________________]

XV. PROOF OF SERVICE

I, the undersigned, declare under penalty of perjury under the laws of the State of Oklahoma 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 [____________________], Oklahoma, by certified mail, return receipt requested, OR by personal delivery as indicated.

Date: [__/__/____]

Signature: [________________________________]

Print Name: [________________________________]

Address: [________________________________]

SOURCES AND REFERENCES

• Oklahoma Trust Act, 60 O.S. §§ 175.1-175.57 — https://law.justia.com/codes/oklahoma/title-60/
• 60 O.S. § 175.23 (District Court jurisdiction).
• 60 O.S. § 175.57 (Breach of Trust — Remedies — Liability; effective Nov. 1, 2024 amendments) — https://law.justia.com/codes/oklahoma/title-60/section-60-175-57/
• Oklahoma Family Wealth Preservation Trust Act, 31 O.S. §§ 10-18 — https://oksenate.gov/sites/default/files/2022-05/os31.pdf
• 12 O.S. § 95 (Limitation of Other Actions; two-year residual at subsection (A)(3)) — https://www.oscn.net/applications/oscn/DeliverDocument.asp?CiteID=439150