Annual Trust Accounting (Vermont Trust Code, 14A V.S.A. § 813(c))

ANNUAL TRUSTEE'S REPORT

Pursuant to 14A V.S.A. § 813(c)

I. TRUST IDENTIFICATION

II. TRUSTEE IDENTIFICATION

III. BENEFICIARIES RECEIVING THIS REPORT (§ 813(c))

IV. SUMMARY OF REPORT

V. SCHEDULE OF RECEIPTS (§ 813(c))

A. Income Receipts

B. Principal Receipts

VI. SCHEDULE OF DISBURSEMENTS (§ 813(c))

A. Ordinary Administration Expenses

B. Distributions to Beneficiaries

C. Taxes

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

VIII. ENDING STATEMENT OF ASSETS (§ 813(c)) (As of [__/__/____])

IX. STATEMENT OF LIABILITIES (§ 813(c))

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

X. TRUSTEE COMPENSATION AND AGENTS HIRED

A. Trustee Compensation (§ 813(c))

B. Agents Hired by Trustee (Recommended Disclosure)

C. Related-Party Transactions (§§ 802, 813(c))

☐ The Trustee did not engage in any transaction 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. LIMITATIONS NOTICE — ONE-YEAR PERIOD AFTER ADEQUATE DISCLOSURE (14A V.S.A. § 1005)

NOTICE TO BENEFICIARIES — LIMITATIONS PERIOD UNDER 14A V.S.A. § 1005. Under Vermont law, a beneficiary may not commence a proceeding against a trustee for breach of trust more than ONE YEAR after the date the beneficiary (or the beneficiary's representative) was sent a trustee's 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 knows or has reason to know of the potential claim, or had a duty to inquire further. If you give written notice to the Trustee within the one-year period stating that this report provides insufficient information to determine whether to commence an action for breach of trust, the limitations period will be extended by an additional SIX MONTHS. If no proceeding is commenced within that extended period, it will be conclusively presumed that this report adequately disclosed the existence of any potential claim. If § 1005(a) does not apply (for example, because no report was sent), a proceeding for breach of trust must be commenced within THREE YEARS after the first to occur of (1) the removal, resignation, or death of the trustee; (2) the termination of your interest in the trust; or (3) the termination of the trust. This notice does not waive any defense the Trustee may have under § 1005 or any other provision of the Vermont Trust Code, and any failure to bring a claim within the limitations period may permanently bar that claim.

XII. BENEFICIARY OBJECTION MECHANISM

A beneficiary who believes this Report contains insufficient information to determine whether to commence an action for breach of trust, or who has objections to any item in this Report, may send a written objection to the Trustee at the address in Section II. To trigger the six-month extension of the limitations period under 14A V.S.A. § 1005(b), the written objection must be received by the Trustee within ONE YEAR of the date this Report was sent.

Trustee Contact for Objections / Inquiries:

XIII. BENEFICIARY RECEIPT, APPROVAL, AND RELEASE (14A V.S.A. § 1009)

The undersigned beneficiary of the Trust:

1. Acknowledges receipt of the foregoing Annual Trustee's Report covering the period [__/__/____] through [__/__/____];
2. Has reviewed the Report and the supporting books and records made available by the Trustee, and represents that the beneficiary is satisfied with the information provided;
3. Approves the Trustee's administration of the Trust during the period covered by the Report; and
4. Pursuant to 14A V.S.A. § 1009, releases and discharges the Trustee from any and all claims, demands, and causes of action arising from the Trustee's administration of the Trust during the period covered, EXCEPT for any claim based on facts that were not disclosed to the beneficiary, that the Trustee knew or should have known were material, or that arose from bad faith or reckless indifference (which a § 1008 exculpation clause cannot exonerate).

Beneficiary Signature: [________________________________]

Print Name: [________________________________]

Date: [__/__/____]

☐ Beneficiary declines to execute a release at this time.

XIV. NOTICE OF RIGHT TO PETITION THE PROBATE DIVISION

You are hereby notified that, as a recipient of this Report, you may petition the Probate Division of the Superior Court of the county where the principal place of administration of the Trust is located, pursuant to 14A V.S.A. §§ 201-205. Available trust proceedings include, without limitation:

• A petition to compel the trustee to report or to provide information beyond this Report;
• A petition for instructions to the trustee;
• A petition to settle accounts, to surcharge the trustee for breach of trust under § 1001, to remove the trustee under § 706, or for any other remedy authorized by 14A V.S.A. ch. 10.

The Probate Division of the Superior Court for the proper county is the exclusive in rem forum for these proceedings (see 4 V.S.A. § 35; 14A V.S.A. § 203). Filing a petition does not, by itself, extend the limitations period under § 1005.

XV. TRUSTEE VERIFICATION AND SIGNATURE

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

1. I have reviewed the foregoing Annual 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, and related-party transactions for the accounting period stated above are disclosed; and
4. This Report is furnished pursuant to 14A V.S.A. § 813(c).

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

Trustee Signature: [________________________________]

Print Name: [________________________________]

Capacity: [________________________________]

XVI. 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 TRUSTEE'S REPORT 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 [____________________], Vermont, OR by personal delivery / certified mail with return receipt requested as indicated.

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

Date: [__/__/____]

Signature: [________________________________]

Print Name: [________________________________]

Address: [________________________________]

SOURCES AND REFERENCES

• 14A V.S.A. § 105 (Default and Mandatory Rules) — https://legislature.vermont.gov/statutes/section/14A/001/00105
• 14A V.S.A. § 201 (Role of Court in Administration of Trust) — https://legislature.vermont.gov/statutes/section/14A/002/00201
• 14A V.S.A. § 813 (Duty to Inform and Report) — https://legislature.vermont.gov/statutes/section/14A/008/00813
• 14A V.S.A. § 1001 (Remedies for Breach of Trust) — https://legislature.vermont.gov/statutes/section/14A/010/01001
• 14A V.S.A. § 1005 (Limitation of Action Against Trustee) — https://legislature.vermont.gov/statutes/section/14A/010/01005
• 14A V.S.A. § 1008 (Exculpation of Trustee) — https://legislature.vermont.gov/statutes/section/14A/010/01008
• 14A V.S.A. § 1009 (Beneficiary's Consent, Release, or Ratification) — https://legislature.vermont.gov/statutes/section/14A/010/01009
• 4 V.S.A. § 35 (Probate Division of the Superior Court — Jurisdiction) — https://legislature.vermont.gov/statutes/section/04/005/00035