Virginia Annual Trust Accounting

ANNUAL TRUST ACCOUNTING

Pursuant to Virginia Code § 64.2-775(C)

I. Trust Identification

II. Accounting Period

III. Trustee(s)

IV. Recipients of This Accounting (Qualified Beneficiaries and Requesting Beneficiaries)

V. Schedule A — Trust Assets at Carrying Value and Fair Market Value (Beginning and Ending)

VI. Schedule B — Trust Liabilities

VII. Schedule C — Receipts During Accounting Period

VIII. Schedule D — Disbursements During Accounting Period

IX. Schedule E — Distributions to Beneficiaries

X. Schedule F — Trustee and Agent Compensation (§ 64.2-775(C))

XI. Reconciliation Summary

XII. STATUTE OF LIMITATIONS NOTICE TO BENEFICIARIES (Va. Code § 64.2-796(A))

IMPORTANT NOTICE — TIME LIMIT TO COMMENCE A PROCEEDING. Under Virginia Code § 64.2-796(A), if this report adequately discloses the existence of a potential claim for breach of trust against the Trustee, you must commence any judicial proceeding against the Trustee for breach of trust within ONE (1) YEAR after the date this report was sent to you or your representative. If you do not commence a proceeding within that one-year period, your claim may be forever barred.

This report is intended to disclose all material facts about the administration of the Trust during the accounting period identified in Section II. If you believe that any matter set forth in this report — or any matter omitted from it — gives rise to a potential claim for breach of trust, you should consult independent legal counsel immediately and within the one-year limitations period.

If subsection (A) of § 64.2-796 does not apply, a residual five-year limitations period under § 64.2-796(C) runs from the earliest of: (i) the Trustee's removal, resignation, or death; (ii) termination of your interest in the Trust; or (iii) termination of the Trust. Claims involving fraud are governed by § 64.2-796(D).

XIII. Trustee Verification (§ 64.2-775(C))

I, the undersigned Trustee, declare under penalty of perjury under the laws of the Commonwealth of Virginia that:

1. I have prepared (or caused to be prepared under my supervision) the foregoing annual accounting;
2. The schedules accurately reflect all trust property, liabilities, receipts, disbursements, distributions, and compensation paid during the accounting period stated in Section II to the best of my knowledge after diligent inquiry;
3. All material facts necessary for the qualified beneficiaries to protect their interests have been disclosed (Va. Code § 64.2-775(A));
4. The source and amount of trustee and agent compensation are fully disclosed in Section X (Va. Code § 64.2-775(C)); and
5. I have served this accounting upon each qualified beneficiary and each non-qualified beneficiary who has requested it.

Notary Acknowledgment

XIV. Commissioner of Accounts Cross-Reference (Testamentary / Court-Supervised Trusts Only)

XV. Beneficiary Receipt and Release (Optional — Va. Code § 64.2-799)

I, the undersigned beneficiary of the above-named Trust, having received and reviewed the foregoing Annual Trust Accounting for the accounting period stated in Section II, and having had the opportunity to consult independent legal counsel of my own choosing:

1. ACKNOWLEDGE RECEIPT of the Annual Trust Accounting and all attached schedules;
2. APPROVE AND RATIFY all acts of the Trustee disclosed therein for the accounting period;
3. RELEASE AND DISCHARGE the Trustee from any and all liability arising out of matters adequately disclosed in the accounting, pursuant to Va. Code § 64.2-799;
4. WAIVE any objection to the accounting, except as expressly reserved below.

Reserved Objections (if any): [____________________________________________________]

XVI. Beneficiary Objection Mechanism

Any beneficiary who objects to any matter in this accounting must serve a written objection upon the Trustee at the address shown in Section III. The objection should:

• State each item objected to with specificity;
• State the factual and legal basis for the objection;
• Be sent by a method that provides delivery confirmation; and
• Be sent within one (1) year of the date this accounting was sent to the objecting beneficiary in order to preserve any claim subject to the limitation in Va. Code § 64.2-796(A).

For testamentary or court-supervised trusts, exceptions to the Commissioner of Accounts' report on this accounting must be filed in the circuit court within fifteen (15) days after the Commissioner files the report (Va. Code § 64.2-1209).

XVII. Proof of Service

Sources and References

• Va. Code § 64.2-775 — Duty to Inform and Report: https://law.lis.virginia.gov/vacode/title64.2/chapter7/section64.2-775/
• Va. Code § 64.2-796 — Limitation of Action Against Trustee: https://law.lis.virginia.gov/vacode/title64.2/chapter7/section64.2-796/
• Va. Code § 64.2-797 — Exculpation: https://law.lis.virginia.gov/vacode/title64.2/chapter7/section64.2-797/
• Va. Code § 64.2-799 — Beneficiary's Consent, Release, or Ratification: https://law.lis.virginia.gov/vacode/title64.2/chapter7/section64.2-799/
• Va. Code § 64.2-1300 et seq. — Commissioner of Accounts; Fiduciary Accountings: https://law.lis.virginia.gov/vacode/title64.2/chapter13/
• Virginia Standing Committee on Commissioners of Accounts (SCCA) — Fiduciary Accounting Forms and Procedures.