Annual Trust Accounting

comments and remove or retain as desired before delivery.
5. Wis. Stat. § 701.0813(3) prescribes the CONTENT of the trustee's annual report. The schedules below track the statutory list.
6. Wis. Stat. § 701.1005(1) imposes a ONE-YEAR statute of limitations on a breach-of-trust claim once the beneficiary has been "sent a report or other record that adequately disclosed the existence of a potential claim." Use the boilerplate limitation notice in Section 11 to trigger this SOL.
7. § 701.1005(2) defines "adequately disclosed" as providing sufficient information so that the beneficiary knows of the potential claim or should have inquired. To meaningfully invoke § 701.1005(1), the accounting must be informative — perfunctory disclosure will not start the clock.
8. § 701.1009 governs binding beneficiary consent/release/ratification. The Receipt and Release in Section 12 is drafted to comply.
9. § 701.1008 limits exculpatory provisions; do NOT use the Receipt and Release to release fraud, willful misconduct, or reckless indifference.
10. Have this document reviewed by qualified Wisconsin-licensed counsel before delivery to beneficiaries.

JURISDICTION: WI
LAST UPDATED: 2026-05-16
STATUTORY BASIS: Wis. Stat. § 701.0813(3); § 701.1005
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ANNUAL TRUST ACCOUNTING

(Pursuant to Wis. Stat. § 701.0813(3), Wisconsin Trust Code)

TABLE OF CONTENTS

1. Trust Identification and Reporting Period
2. Statutory Authority and Purpose
3. Trustee(s) and Other Fiduciaries
4. Beneficiaries Served
5. Schedule A — Trust Property: Carrying Value and Fair Market Value
6. Schedule B — Trust Liabilities
7. Schedule C — Receipts
8. Schedule D — Disbursements
9. Schedule E — Distributions to Beneficiaries
10. Schedule F — Trustee and Agent Compensation
11. Limitation Notice Under Wis. Stat. § 701.1005
12. Beneficiary Receipt and Release
13. Beneficiary Objection Mechanism
14. Trustee Verification

1. TRUST IDENTIFICATION AND REPORTING PERIOD

Name of Trust: [________________________________]

Date of Trust Instrument: [__/__/____]

Trust Taxpayer Identification Number (last four digits): XXX-XX-[____]

Trust Situs: Wisconsin — [________________________________] County

Reporting Period:

From: [__/__/____] To: [__/__/____]

Type of Accounting:

☐ Annual report under Wis. Stat. § 701.0813(3) (informal)
☐ Interim report
☐ Final report (trust termination)
☐ Report on resignation or removal of trustee
☐ Report covering successor trustee's assumption of office

2. STATUTORY AUTHORITY AND PURPOSE

This Annual Trust Accounting is delivered pursuant to Wis. Stat. § 701.0813(3), which requires the trustee to provide qualified beneficiaries with a periodic report of the trust property, liabilities, receipts, disbursements (including source and amount of the trustee's compensation), a listing of trust assets, and, if feasible, their respective market values.

This Accounting is intended to (a) discharge the Trustee's duty to inform and report under Wis. Stat. § 701.0813, (b) serve as an "adequate disclosure" record for purposes of starting the one-year limitations period under Wis. Stat. § 701.1005(1) (see Section 11), and (c) provide the basis upon which beneficiaries may, if they choose, deliver a Receipt and Release under Wis. Stat. § 701.1009 (see Section 12).

3. TRUSTEE(S) AND OTHER FIDUCIARIES

4. BENEFICIARIES SERVED

5. SCHEDULE A — TRUST PROPERTY: CARRYING VALUE AND FAIR MARKET VALUE

Beginning of Period — Inventory:

End of Period — Inventory:

Notes on Valuation Methodology: [________________________________]

6. SCHEDULE B — TRUST LIABILITIES

Net Trust Equity (FMV minus Liabilities), End of Period: [$________________]

7. SCHEDULE C — RECEIPTS

A. Income Receipts:

B. Principal Receipts:

Total Receipts (Income + Principal): [$________________]

8. SCHEDULE D — DISBURSEMENTS

A. Administrative Disbursements (Other Than Compensation — see Schedule F):

B. Professional Fees Paid:

Total Disbursements (excluding distributions and trustee compensation): [$________________]

9. SCHEDULE E — DISTRIBUTIONS TO BENEFICIARIES

10. SCHEDULE F — TRUSTEE AND AGENT COMPENSATION

A. Trustee Compensation:

Authority for compensation:

☐ Trust instrument provision (specify): [________________________________]
☐ Reasonable compensation under Wis. Stat. § 701.0708(1)
☐ Court order: [________________________________]
☐ Written agreement with beneficiaries

Change in Compensation During Period: ☐ No ☐ Yes — Notice under § 701.0813(2)(d) sent on [__/__/____]; details: [________________________________]

B. Agent and Service Provider Compensation:

11. LIMITATION NOTICE UNDER WIS. STAT. § 701.1005

IMPORTANT — STATUTE OF LIMITATIONS NOTICE

PLEASE READ CAREFULLY. THIS NOTICE AFFECTS YOUR LEGAL RIGHTS.

Under Wis. Stat. § 701.1005(1), a beneficiary of a trust may not commence a proceeding against a trustee for breach of trust more than one (1) year after the earlier of either:

(a) the date on which the beneficiary or a representative of the beneficiary waived the right to a report under Wis. Stat. § 701.0813(4); or

(b) the date on which the beneficiary or a representative of the beneficiary was sent a report or other record that adequately disclosed the existence of a potential claim for breach of trust.

Under Wis. Stat. § 701.1005(2), a report or other record adequately discloses the existence of a potential claim for breach of trust if it provides sufficient information so that the beneficiary or representative knows of the potential claim or should have inquired into its existence.

This Annual Trust Accounting, together with the schedules and attachments delivered with it, is intended by the Trustee to be a "report or other record" within the meaning of Wis. Stat. § 701.1005(1)(b). If you believe that any matter shown in this Accounting (or any matter that should have been shown but is not) is or may be a breach of trust by the Trustee, you must commence a proceeding against the Trustee within one (1) year after the date this Accounting was sent to you, or your claim will be barred under Wis. Stat. § 701.1005(1).

If subsection (1) does not apply, a proceeding by a beneficiary against a trustee for breach of trust must be commenced within five (5) years after the first to occur of the trustee's removal, resignation, or death; the termination of the beneficiary's interest in the Trust; or the termination of the Trust (Wis. Stat. § 701.1005(3)). Claims for fraud are excluded from these limitations and are governed by applicable law (Wis. Stat. § 701.1005(4)).

Date this Accounting was sent: [__/__/____]

Deadline to commence one-year proceeding under § 701.1005(1): [__/__/____]

You may petition the Circuit Court for [________________________________] County, Wisconsin, in a proceeding concerning the Trust under Wis. Stat. § 701.0201. Consultation with an attorney licensed in Wisconsin is strongly recommended.

12. BENEFICIARY RECEIPT AND RELEASE

OPTIONAL RECEIPT, RELEASE, AND APPROVAL

The undersigned beneficiary of the [________________________________] (the "Trust") hereby acknowledges receipt of the Annual Trust Accounting for the period [__/__/____] to [__/__/____].

Having reviewed the Accounting (and any attachments), and having had a reasonable opportunity to ask questions and seek the advice of independent counsel of the beneficiary's own choosing, the undersigned beneficiary, pursuant to Wis. Stat. § 701.1009:

A. Approves and ratifies all acts, transactions, receipts, disbursements, distributions, valuations, and compensation reflected in the Accounting;

B. Consents to the Trustee's continued administration of the Trust in the manner shown;

C. Releases and discharges the Trustee from any and all claims, demands, and causes of action arising from or relating to the matters disclosed in the Accounting, excepting any claim arising from (i) fraud, (ii) willful misconduct, (iii) reckless indifference to the purposes of the Trust or the interests of the beneficiaries, or (iv) facts not disclosed by the Accounting; and

D. Acknowledges that this Receipt and Release is given freely and voluntarily, that the undersigned has not been induced to sign by improper conduct of the Trustee, and that the undersigned is fully aware of the undersigned's rights as a beneficiary of the Trust.

Beneficiary Name: [________________________________]

Signature: ________________________________

Date: [__/__/____]

13. BENEFICIARY OBJECTION MECHANISM

If you object to any matter shown in (or omitted from) this Accounting, you have the following options:

A. Informal Resolution.
You may submit written questions or objections to the Trustee at the address in Section 3 within [______] days of receipt of this Accounting. The Trustee will respond in writing within a reasonable time.

B. Judicial Proceeding.
You may petition the Circuit Court for [________________________________] County, Wisconsin, under Wis. Stat. § 701.0201, for any of the proceedings authorized by the Wisconsin Trust Code, including but not limited to:

• A proceeding to require an accounting (Wis. Stat. § 701.0813);
• A proceeding for instructions or interpretation;
• A proceeding to compel performance of the Trustee's duties (Wis. Stat. § 701.1001);
• A proceeding to surcharge the Trustee for breach of trust (Wis. Stat. § 701.1002);
• A proceeding to remove the Trustee (Wis. Stat. § 701.0706);
• A proceeding to modify or terminate the Trust (Wis. Stat. §§ 701.0411 to 701.0416).

C. One-Year Deadline.
Any judicial proceeding alleging breach of trust based on a matter adequately disclosed in this Accounting must be commenced within one (1) year of the date this Accounting was sent to you. See Section 11.

14. TRUSTEE VERIFICATION

The undersigned, as Trustee of the Trust identified in Section 1, hereby verifies under penalty of perjury under the laws of the State of Wisconsin that:

A. The undersigned has reviewed this Annual Trust Accounting and the attached schedules;

B. To the best of the undersigned's knowledge, information, and belief, the matters set forth in this Accounting are true, correct, and complete;

C. The Accounting fairly and accurately reflects the administration of the Trust for the reporting period stated; and

D. This Accounting is delivered to the beneficiaries listed in Section 4 in compliance with the Trustee's duty under Wis. Stat. § 701.0813(3).

Date of Verification: [__/__/____]

STATE OF WISCONSIN

COUNTY OF [________________________________]

Subscribed and sworn to (or affirmed) before me this [______] day of [________________], [________], by [________________________________].

Signature of Notary Public: ________________________________

Printed Name: [________________________________]

My Commission: ☐ Is permanent ☐ Expires: [__/__/____]

[NOTARY SEAL]

ATTACHMENTS

☐ Brokerage / custodian statements for reporting period
☐ Bank statements for reporting period
☐ Copies of K-1s, 1099s, and other tax-reporting documents
☐ Appraisal reports for hard-to-value assets
☐ Form 1041 (U.S. Income Tax Return for Estates and Trusts) for trust tax year
☐ Wisconsin Form 2 (Wisconsin Fiduciary Income Tax Return) for trust tax year
☐ Investment policy statement
☐ Notice of change in trustee compensation (§ 701.0813(2)(d)), if applicable
☐ Other: [________________________________]

SOURCES AND REFERENCES

• Wisconsin Trust Code, Wis. Stat. Ch. 701 (effective July 1, 2014; 2013 Wis. Act 92).
• Wis. Stat. § 701.0813 — Duty to inform and report; § 701.0813(3) — Annual report content.
• Wis. Stat. § 701.1005 — Limitation of action against trustee.
• Wis. Stat. § 701.1008 — Exculpation of trustee.
• Wis. Stat. § 701.1009 — Beneficiary's consent, release, or ratification.
• Wis. Stat. §§ 701.0708, 701.0709 — Trustee compensation and reimbursement.
• Wisconsin Legislature: https://docs.legis.wisconsin.gov/document/statutes/701.0813 ; https://docs.legis.wisconsin.gov/document/statutes/701.1005