Annual Trust Accounting (Washington)

ANNUAL TRUST ACCOUNTING

State of Washington

Pursuant to RCW 11.106.020 and RCW 11.96A.070

SECTION 1 — STATUTORY BASIS

This Annual Trust Accounting (the "Accounting") is delivered pursuant to:

(a) RCW 11.106.020, which requires the Trustee to mail or deliver at least annually to each permissible distributee a written itemized statement of all current receipts and disbursements of trust funds, both principal and income;

(b) RCW 11.98.072(1), the Trustee's general duty to keep qualified beneficiaries reasonably informed about the administration of the trust and material facts necessary to protect their interests; and

(c) RCW 11.96A.070(1)(b), which provides that a report adequately discloses a potential breach-of-trust claim when it gives sufficient information for the beneficiary or representative to know or have reason to know of the claim. A report that includes all items listed in that subsection that are relevant to the reporting period is presumed to provide sufficient information.

SECTION 2 — TRUST IDENTIFICATION AND PARTIES

2.1 Trust

2.2 Trustee

2.3 Permissible Distributees Receiving This Accounting

Pursuant to RCW 11.106.020, this Accounting is delivered to each permissible distributee, as defined in RCW 11.98.002:

SECTION 3 — SCHEDULE A — ASSETS AT BEGINNING OF PERIOD

Included to support the presumption of adequate disclosure under RCW 11.96A.070(1)(b)(ii), when relevant.

SECTION 4 — SCHEDULE B — LIABILITIES AT BEGINNING OF PERIOD

Included to support the presumption of adequate disclosure under RCW 11.96A.070(1)(b)(ii), when relevant.

SECTION 5 — SCHEDULE C — RECEIPTS (INCOME AND PRINCIPAL)

Required annually by RCW 11.106.020; also included to support the presumption of adequate disclosure under RCW 11.96A.070(1)(b)(i).

5.1 Income Receipts

5.2 Principal Receipts

SECTION 6 — SCHEDULE D — DISBURSEMENTS (INCOME AND PRINCIPAL)

Required annually by RCW 11.106.020; also included to support the presumption of adequate disclosure under RCW 11.96A.070(1)(b)(i). Beneficiary distributions listed in Schedule E should not be duplicated here if they are subtracted separately in Section 14.

6.1 Income Disbursements

6.2 Principal Disbursements

SECTION 7 — SCHEDULE E — DISTRIBUTIONS TO BENEFICIARIES

SECTION 8 — SCHEDULE F — TRUSTEE COMPENSATION

Included to support the presumption of adequate disclosure under RCW 11.96A.070(1)(b)(iii), when relevant.

Related Investment-Company Compensation Disclosure (RCW 11.98.078(5)):

☐ The Trustee did not receive compensation during this period from an investment company or investment trust for investment advisory, investment management, or other services described in RCW 11.98.078(5).

☐ The Trustee received such compensation. The rate and method used to determine it were: [________________________________]

SECTION 9 — SCHEDULE G — AGENTS HIRED BY TRUSTEE

Included to support the presumption of adequate disclosure under RCW 11.96A.070(1)(b)(iv), when relevant.

SECTION 10 — SCHEDULE H — LONG-TERM AGREEMENTS AND ENCUMBRANCES

Included to support the presumption of adequate disclosure under RCW 11.96A.070(1)(b)(v), when relevant.

The following pledges, mortgages, options, leases, or other agreements binding trust property for a period of five (5) years or more were granted or entered into during the reporting period:

☐ None during the reporting period.

SECTION 11 — SCHEDULE I — CONFLICT OF INTEREST AND SELF-DEALING DISCLOSURE

Included to support the presumption of adequate disclosure under RCW 11.96A.070(1)(b)(vi); see RCW 11.98.078.

The following transactions during the reporting period were equivalent to those described in RCW 11.98.078, or could have been affected by a conflict between the Trustee's fiduciary and personal interests:

☐ None during the reporting period.

SECTION 12 — SCHEDULE J — ASSETS AT END OF PERIOD

Included to support the presumption of adequate disclosure under RCW 11.96A.070(1)(b)(ii); RCW 11.106.020 requires an itemized statement of property held upon a permissible distributee's request.

SECTION 13 — SCHEDULE K — LIABILITIES AT END OF PERIOD

SECTION 14 — RECONCILIATION SUMMARY

SECTION 15 — IMPORTANT NOTICES TO PERMISSIBLE DISTRIBUTEES

15.1 Right to Petition Superior Court for Review (RCW 11.96A.070(1)(b)(vii))

Each recipient of this Accounting is hereby notified that, pursuant to chapter 11.106 RCW, the recipient may petition the Superior Court of the State of Washington to obtain review of this Accounting and of the acts of the Trustee disclosed in this Accounting. RCW 11.106.040 governs the timing and good-cause standard for an order directing a trustee to file an account.

15.2 Three-Year Statute of Limitations on Breach-of-Trust Claims (RCW 11.96A.070(1)(b)(viii))

EACH RECIPIENT IS HEREBY NOTIFIED THAT, PURSUANT TO RCW 11.96A.070, A CLAIM AGAINST THE TRUSTEE FOR BREACH OF TRUST MAY NOT BE COMMENCED AFTER THE EXPIRATION OF THREE (3) YEARS FROM THE DATE THIS REPORT IS DELIVERED IN THE MANNER PROVIDED BY RCW 11.96A.110.

The three-year period based on delivery of a report applies only when the report adequately discloses the existence of the potential claim and gives the required limitations notice. Other accrual and tolling rules may apply. A recipient who may have a claim should promptly consult independent Washington counsel.

15.3 TEDRA Dispute Resolution (RCW Chapter 11.96A)

Disputes regarding this Accounting may be resolved through one or more of the following mechanisms under the Washington Trust and Estate Dispute Resolution Act:

To initiate an objection or invoke TEDRA, the recipient should consult with independent legal counsel and direct any objection in writing to the Trustee at the address provided in Section 2.2.

SECTION 16 — TRUSTEE VERIFICATION (RCW 5.50.050)

I, [________________________________], the undersigned Trustee, declare under penalty of perjury under the law of Washington that the foregoing is true and correct, including that:

1. I am the duly appointed and acting Trustee of the trust identified above;

2. I have prepared, examined, or caused to be prepared the foregoing Annual Trust Accounting;

3. The Accounting fully and accurately reflects the receipts, disbursements, distributions, assets, liabilities, trustee compensation, agent compensation, and material transactions of the trust for the period stated;

4. All material facts known to me regarding potential conflicts of interest and long-term encumbrances are disclosed herein; and

5. No material information has been knowingly omitted.

SECTION 17 — OPTIONAL RECEIPT AND RELEASE (BENEFICIARY ACKNOWLEDGMENT)

Receipt and Release by Permissible Distributee

I, [________________________________], a permissible distributee of the trust identified above, hereby acknowledge that:

1. I have received the foregoing Annual Trust Accounting for the period from [__/__/____] through [__/__/____];

2. I have had a reasonable opportunity to review the Accounting and to consult with independent legal and financial advisors of my choosing;

3. I have received notice of the three-year statute of limitations under RCW 11.96A.070 and of my right to petition the Superior Court under RCW Chapter 11.106;

4. I approve and accept the Accounting as a full, true, and accurate report of the Trustee's administration of the trust for the stated period;

5. Subject to RCW 11.98.108, I release the Trustee from liability for matters adequately disclosed in this Accounting. This release does not apply if it was induced by the Trustee's improper conduct or if, when signing, I did not know my rights or the material facts relating to the alleged breach; and

6. This Receipt and Release is given voluntarily after an opportunity to seek independent advice.

☐ I sign this Receipt and Release without objection. A recipient who objects should not sign this release and may document the objection separately.

SECTION 18 — DELIVERY RECORD (RCW 11.96A.070 and RCW 11.96A.110)

I declare that on [__/__/____], I served a true and correct copy of this Annual Trust Accounting on each of the following permissible distributees by the method indicated:

I declare under penalty of perjury under the law of Washington that the foregoing is true and correct.

SECTION 19 — NOTARY ACKNOWLEDGMENT (RECOMMENDED)

On this [____] day of [____________], 20[____], before me personally appeared [________________________________], known to me to be the Trustee who executed the foregoing Annual Trust Accounting, and acknowledged the same as the Trustee's free and voluntary act and deed for the uses and purposes set forth.

SOURCES AND REFERENCES

• RCW 11.106.020 — Trustee's annual statement
• RCW 11.106.030 — Intermediate and final accounts
• RCW 11.106.040 — Petition for statement of account
• RCW 11.106.100 — Waiver of accounting by adult beneficiary
• RCW 11.98.002 — Permissible distributee and qualified beneficiary definitions
• RCW 11.98.005 — Trust situs
• RCW 11.98.072 — Trustee information and notification duties
• RCW 11.98.078 — Duty of loyalty and related compensation notice
• RCW 11.98.108 — Beneficiary consent, release, or ratification
• RCW 11.96A.070 — Limitation of actions
• RCW 11.96A.080 — Judicial proceedings
• RCW 11.96A.110 — Notice and service
• RCW 11.96A.150 — Costs and attorneys' fees
• RCW 11.96A.220 — Nonjudicial binding agreements
• RCW 11.96A.230 — Filing a nonjudicial binding agreement
• RCW 11.96A.300 — Mediation
• RCW 11.96A.310 — Arbitration
• RCW 11.96A.320 — Enforcement
• RCW 5.50.050 — Form of unsworn declaration

END OF ANNUAL TRUST ACCOUNTING