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 establishes the content required for a report to qualify as an "adequate report" that triggers the three-year statute of limitations on claims for breach of trust.

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

Required by RCW 11.96A.070(1)(b)(ii)

SECTION 4 — SCHEDULE B — LIABILITIES AT BEGINNING OF PERIOD

Required by RCW 11.96A.070(1)(b)(ii)

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

Required by RCW 11.106.020 and RCW 11.96A.070(1)(b)(i)

5.1 Income Receipts

5.2 Principal Receipts

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

Required by RCW 11.106.020 and RCW 11.96A.070(1)(b)(i)

6.1 Income Disbursements

6.2 Principal Disbursements

SECTION 7 — SCHEDULE E — DISTRIBUTIONS TO BENEFICIARIES

SECTION 8 — SCHEDULE F — TRUSTEE COMPENSATION

Required by RCW 11.96A.070(1)(b)(iii)

Dual-Role Compensation Disclosure (RCW 11.98.078(4)–(5)):

☐ The Trustee did not receive compensation from any related role during this period.

☐ The Trustee received compensation in the following additional capacities, fully disclosed here: [________________________________]

SECTION 9 — SCHEDULE G — AGENTS HIRED BY TRUSTEE

Required by RCW 11.96A.070(1)(b)(iv)

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

Required by RCW 11.96A.070(1)(b)(v)

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

Required by 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

Required by RCW 11.96A.070(1)(b)(ii); RCW 11.106.020 — upon 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 RCW Chapter 11.106, 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.

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.

If the recipient believes that any act or omission of the Trustee disclosed in this Accounting constitutes a breach of trust, the recipient must commence any proceeding within three (3) years of the delivery date stated below or such claim may be forever barred.

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

I, [________________________________], the undersigned Trustee, declare under penalty of perjury under the laws of the State of Washington 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 — 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. I release and forever discharge the Trustee, the Trustee's agents, and the Trustee's successors from any and all claims, demands, liabilities, and causes of action arising from or related to the matters disclosed in the Accounting, to the fullest extent permitted by Washington law (including RCW 11.96A.120 and RCW 11.98.108); and

6. This Receipt and Release is given voluntarily, with full knowledge, and is binding upon my heirs, successors, and assigns.

☐ I sign this Receipt and Release with any objection.

☐ I sign this Receipt and Release without objection.

☐ I object to the Accounting as set forth in the attached written objection.

SECTION 18 — PROOF OF SERVICE (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 laws of the State 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 Beneficiary
• RCW 11.98.002 — Definitions (Permissible Distributee; Qualified Beneficiary)
• RCW 11.98.072 — Trustee Notification Requirements
• RCW 11.98.078 — Trustee Duty of Loyalty (Self-Dealing)
• RCW 11.98.108 — Beneficiary Consent, Release, or Ratification
• RCW 11.96A.070 — Statutes of Limitation (Three-Year SOL)
• RCW 11.96A.110 — Notice and Service
• RCW 11.96A.120 — Virtual Representation; Release
• RCW 11.96A.150 — Costs and Attorneys' Fees
• RCW 11.96A.220 – .320 — TEDRA Nonjudicial Agreements, Mediation, Arbitration
• RCW 11.100 — Washington Prudent Investor Act
• In re Estate of Cooper, 81 Wn. App. 79 (1996) — Standards for trustee accountings
• Anderson v. Dussault, 181 Wn.2d 360 (2014) — Adequate disclosure required to trigger TEDRA SOL

END OF ANNUAL TRUST ACCOUNTING