Annual Trust Accounting (South Dakota — SDCL § 55-2-13)

ANNUAL TRUST ACCOUNTING

Pursuant to South Dakota Codified Laws § 55-2-13 and § 55-2-14

I. TRUST IDENTIFICATION

II. TRUSTEE AND DIRECTED-TRUST FIDUCIARY IDENTIFICATION

A. Trustee(s)

B. Directed Trust Fiduciaries (SDCL Ch. 55-1B)

☐ Not Applicable — the Trust is not a directed trust.

III. QUALIFIED 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 STATEMENT OF ASSETS (As of [__/__/____])

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

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:

[____________________________________________________________]

[____________________________________________________________]

XI. STATUTE OF LIMITATIONS ACKNOWLEDGMENT

You are hereby informed that, under the laws of South Dakota:

1. Default Six-Year Period (SDCL § 15-2-13). Actions upon a contract, obligation, or liability (express or implied) — including most breach-of-trust claims sounding in contract or implied liability — must be commenced within six (6) years after the cause of action has accrued.

2. Discovery Rule for Fraud / Material Omission (SDCL § 15-2-15). In the case of fraud, intentional misrepresentation, or material omission, the limitation period does not commence to run until discovery of the breach of trust.

3. Shortened Period Per Trust Instrument. If the Trust instrument contains an enforceable provision shortening the period within which a beneficiary may object to or contest items disclosed in an account, the following period applies to this account: [____] days from the date this account is received.

☐ The Trust instrument does NOT contain a shortened objection period.

☐ The Trust instrument contains a shortened objection period of [____] days from receipt of this account.

XII. BENEFICIARY OBJECTION MECHANISM — CIRCUIT COURT PETITION (SDCL Ch. 21-22)

You are hereby notified that, as a qualified beneficiary, you may:

1. Submit a Written Objection to the Trustee. Direct any objection in writing to the Trustee at the address in Section II within [____] days of your receipt of this account. The Trustee will respond in writing within a reasonable time and will work in good faith to resolve any issue informally.

2. Petition the South Dakota Circuit Court for Court Supervision. Pursuant to SDCL §§ 21-22-9 and 21-22-13, you may petition the Circuit Court of the State of South Dakota for the county in which the Trust is administered to:

• Subject the Trust to continuing court supervision;
• Compel an accounting or further accounting;
• Surcharge the Trustee for breach of trust;
• Remove or replace the Trustee; or
• Adjudicate any other matter relevant to the management or disposition of trust assets.

3. Designate a Representative. If you wish to receive future information and accountings through a designated representative under SDCL § 55-2-13, you may so direct in writing to the Trustee, identifying the representative and the scope of authority.

Trustee Contact for Objections / Inquiries:

XIII. RECEIPT AND RELEASE BY BENEFICIARY

I, the undersigned beneficiary of the Trust identified above, hereby acknowledge that:

1. I have received a copy of this Annual Trust Accounting for the period from [__/__/____] through [__/__/____];
2. I have had a full and fair opportunity to review the Accounting, to ask questions of the Trustee, and to consult independent counsel of my choosing;
3. I approve and ratify all acts of the Trustee disclosed in this Accounting;
4. I release and discharge the Trustee, and each Trustee identified in Section II, from any and all claims, demands, and causes of action arising from or relating to any item adequately disclosed in this Accounting; and
5. I acknowledge that this release is given freely and voluntarily, with full knowledge of my rights under SDCL §§ 55-2-13 and 55-2-14 and SDCL Ch. 21-22.

Beneficiary Signature: [________________________________]

Print Name: [________________________________]

Date: [__/__/____]

(Each qualified beneficiary should execute a separate Receipt and Release; attach additional pages as needed.)

XIV. TRUSTEE VERIFICATION AND SIGNATURE

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

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 SDCL §§ 55-2-13 and 55-2-14 and the duties of trust administration under SDCL Title 55.

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

Trustee Signature: [________________________________]

Print Name: [________________________________]

Capacity: [________________________________]

XV. 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 qualified beneficiary identified in Section III by the method indicated:

☐ Certified Mail, Return Receipt Requested

☐ First-Class Mail, Postage Prepaid

☐ Personal Delivery

☐ Electronic Delivery with Confirmation

☐ Other: [____________________]

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

Date: [__/__/____]

Signature: [________________________________]

Print Name: [________________________________]

Address: [________________________________]

SOURCES AND REFERENCES

• SDCL § 55-2-13 (Notice to Qualified Beneficiaries / Information Duty) — https://sdlegislature.gov/Statutes/55-2-13
• SDCL § 55-2-13.1 (Information to Excluded Fiduciaries) — https://sdlegislature.gov/Statutes/55-2-13.1
• SDCL § 55-2-14 (Beneficiary's Right to Information) — https://sdlegislature.gov/Statutes/55-2-14
• SDCL Ch. 55-1B (Directed Trusts) — https://sdlegislature.gov/Statutes/55-1B
• SDCL Ch. 55-4 (Trustee Duties and Powers) — https://sdlegislature.gov/Statutes/55-4
• SDCL Ch. 55-13A (Principal and Income Act) — https://sdlegislature.gov/Statutes/55-13A
• SDCL Ch. 21-22 (Trust Proceedings — Court Supervision) — https://sdlegislature.gov/Statutes/21-22
• SDCL § 21-22-9 (Petition to Circuit Court) — https://sdlegislature.gov/Statutes/21-22-9
• SDCL § 21-22-13 (Petition for Court Supervision of Trust Assets) — https://sdlegislature.gov/Statutes/21-22-13
• SDCL § 15-2-13 (Six-Year Residual Limitations) — https://sdlegislature.gov/Statutes/15-2-13
• SDCL § 15-2-15 (Discovery Rule for Fraud / Material Omission) — https://sdlegislature.gov/Statutes/15-2-15
• South Dakota Unified Judicial System — Circuit Court — https://ujs.sd.gov/