Annual Trust Accounting and Trustee's Report (S.C. Code Ann. § 62-7-813(c)) - South Carolina

ANNUAL TRUST ACCOUNTING AND TRUSTEE'S REPORT

Pursuant to S.C. Code Ann. § 62-7-813(c)

I. TRUST IDENTIFICATION

II. TRUSTEE IDENTIFICATION (§ 62-7-813(c)(1)(B))

Principal Place of Administration (§ 62-7-108):

[____________________________________________________________]

County and state of principal place of administration: [____________________]

III. RECIPIENTS OF THIS REPORT (§ 62-7-813(c)(1))

IV. SUMMARY OF ACCOUNT

V. SCHEDULE A — STARTING STATEMENT OF ASSETS (As of [__/__/____])

VI. SCHEDULE B — RECEIPTS

B-1. Income Receipts

B-2. Principal Receipts

VII. SCHEDULE C — DISBURSEMENTS

C-1. Ordinary Administration Expenses

C-2. Distributions to Beneficiaries

C-3. Taxes

VIII. SCHEDULE D — TRUSTEE COMPENSATION AND AGENTS HIRED (§ 62-7-813(c)(1)(B))

D-1. Trustee Compensation — Source and Amount

D-2. Agents Hired by Trustee

D-3. 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:

[____________________________________________________________]

[____________________________________________________________]

IX. SCHEDULE E — STATEMENT OF LIABILITIES (As of End of Period)

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

X. SCHEDULE F — ENDING STATEMENT OF ASSETS (As of [__/__/____])

XI. SCHEDULE G — INVESTMENT CHANGES AND DISCRETIONARY ACTIONS

☐ No material discretionary actions or investment changes were taken during the accounting period beyond those disclosed in Schedules B, C, and D.

XII. STATUTORY LIMITATIONS NOTICE — § 62-7-1005

NOTICE OF LIMITATIONS ON CLAIMS AGAINST THE TRUSTEE

Under S.C. Code Ann. § 62-7-1005(a), a beneficiary may not commence a proceeding against the Trustee for breach of trust more than ONE (1) YEAR after the date the beneficiary or the beneficiary's representative was sent a report that adequately disclosed the existence of a potential claim for breach of trust. A report adequately discloses the existence of a potential claim if it provides sufficient information so that the beneficiary or the beneficiary's representative knows of the potential claim or should have inquired into its existence (§ 62-7-1005(b)).

If § 62-7-1005(a) does not apply, then under S.C. Code Ann. § 62-7-1005(c) a judicial proceeding by a beneficiary against the Trustee for breach of trust must be commenced within THREE (3) YEARS after the first to occur of: (1) the removal, resignation, or death of the Trustee; (2) the termination of the beneficiary's interest in the Trust; or (3) the termination of the Trust.

The one-year period under S.C. Code Ann. § 62-7-1005(a) applies only to a potential breach-of-trust claim adequately disclosed by a report sent to the beneficiary or the beneficiary's representative.

XIII. BENEFICIARY OBJECTION MECHANISM — SC PROBATE COURT (§ 62-7-201; § 62-7-204)

A beneficiary who has questions about or objects to any item in this Report is encouraged (but not required) to contact the Trustee in writing within [____] days of receipt at the address in Section II, identifying with particularity the item objected to and the basis for the objection. This informal step does not extend, shorten, or substitute for the statutory limitations periods stated in Section XII.

A beneficiary may petition the Probate Court of [____________________] County, South Carolina about an internal trust matter, including review and settlement of accounts or appointment or removal of a trustee. S.C. Code Ann. § 62-7-201(a) gives the probate court jurisdiction over internal affairs, subject to removal under § 62-1-302(d).

Under § 62-7-204(a), venue generally lies in the county where the principal place of administration is or will be located. For a trust created by will while the decedent's estate remains open, venue also lies in the county administering that estate.

XIV. OPTIONAL — BENEFICIARY RECEIPT AND RELEASE (§ 62-7-1009)

The undersigned beneficiary, having received and reviewed the foregoing Annual Trust Accounting and Trustee's Report for the period [__/__/____] through [__/__/____], with full opportunity to review the supporting books and records and to consult with counsel of the beneficiary's choosing, and having full knowledge of the beneficiary's rights and of the material facts relating to the administration of the Trust during the period covered, hereby:

1. ACKNOWLEDGES RECEIPT of the Report and of all distributions to the beneficiary disclosed in Schedule C-2; and

2. APPROVES the acts of the Trustee disclosed in the Report; and

3. RELEASES the Trustee, pursuant to S.C. Code Ann. § 62-7-1009, from liability to this beneficiary for the acts, omissions, and transactions disclosed in the Report, to the extent this beneficiary knows the material facts and rights relating to them and the release is not induced by improper conduct.

This Release is given voluntarily, without compulsion, and without inducement by improper conduct of the Trustee.

Beneficiary Signature: [________________________________]

Print Name: [________________________________]

Date: [__/__/____]

State of South Carolina, County of [____________________]: Subscribed and sworn to before me on [__/__/____].

Notary Public: [________________________________] My Commission Expires: [__/__/____]

XV. TRUSTEE VERIFICATION AND SIGNATURE

I, the undersigned Trustee, confirm:

1. I have reviewed the foregoing Annual Trust Accounting and Trustee's Report 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, agents hired (including any related-party agents), and discretionary actions for the accounting period stated above are disclosed; and
4. This Report is furnished pursuant to S.C. Code Ann. § 62-7-813(c). Whether it adequately discloses a particular potential claim for breach of trust is determined under § 62-7-1005(a) and (b).

Executed on [__/__/____] at [____________________], South Carolina.

Trustee Signature: [________________________________]

Print Name: [________________________________]

Capacity: [________________________________]

XVI. DELIVERY RECORD — COMPLETE AFTER SENDING

Recorded by: [________________________________] Date recorded: [__/__/____]

SOURCES AND REFERENCES

• S.C. Code Ann. § 62-7-103 (Definitions — Qualified Beneficiary, Distributee, Permissible Distributee)
• S.C. Code Ann. § 62-7-105 (Default and Mandatory Rules; limitations periods are mandatory)
• S.C. Code Ann. § 62-7-108 (Principal Place of Administration)
• S.C. Code Ann. § 62-1-302(d)(4) (Removal of Trust Proceedings) — https://www.scstatehouse.gov/code/t62c001.php
• S.C. Code Ann. § 62-7-201 (Role of Court in Administration of Trust)
• S.C. Code Ann. § 62-7-204 (Venue)
• S.C. Code Ann. § 62-7-303 (Representation by Fiduciaries and Parents)
• S.C. Code Ann. § 62-7-813 (Duty to Inform and Report; subsection (c) annual report)
• S.C. Code Ann. § 62-7-1005 (Limitation of Action Against Trustee)
• S.C. Code Ann. § 62-7-1009 (Beneficiary's Consent, Release, or Ratification)