March 18, 2016
TO:
Beneficiaries and Interested Persons
FROM:
TRUSTEE, Trustee
RE:
Report of Administration of the _____________ Family Trust pursuant to Probate Code Sections
16062 and 16063
Provided with this letter is an accounting for ____________ Family Trust ("Trust") by TRUSTEE,
Trustee ("Trustee") covering the period between January 1, ____ and December 31, _____ ("account
period").
1.
Beginning Assets
Because of the death of TRUSTOR on ______________, for this account period, the Trustee
adjusted the carrying values to reflect the values listed on the Federal Estate Tax Return. A copy of
the Federal Estate Tax Return, as well as copies of the statements from the various institutions, are
available on request.
OR
The beginning assets are the same as the reported assets from the _____ accounting. If you would
like another copy of the _____ accounting, please let me know.
2.
Receipts and Disbursements of Trust Principal and Income
The attached accounting provides details of the receipts, disbursements and financial transactions
made by the Trustee during the account period.
Schedule A
This is the “Receipt” schedule. It is a detailed list showing all interest and dividend income,
retirement and social security income, draws (advances) taken from the Reverse mortgage for funds,
and other misc. income received by the trust during the accounting period.
Pursuant to “generally accepted accounting principles” (or Uniform Principal and Income Act)
capital gains are allocated to principal and the interest and dividends are allocated to income.
Report of the Administration of the _________ Family Trust for _____
March 18, 2016
Page two
Schedule B
If trust property is sold during the accounting period, it will be listed on Schedule B if the sale has
resulted in a capital gain to the trust. The details of the transaction are disclosed. (If property is sold
at a loss, it is disclosed on a “Loss” schedule.)
Schedule C
This is the “Disbursement” Schedule, which identifies every expense paid by the trustee during the
accounting period.
Schedule D
If trust property is sold during the accounting period, it will be listed on Schedule D if the sale has
resulted in a capital loss to the trust. The details of the transaction are disclosed. For the most part,
these losses represent a decrease in value of the security since the time of the Trustor’s passing.
Schedule E
This is the “Distribution” Schedule, which identifies every distribution of assets of the trust to a
beneficiary. In 2013, a total of ______ was distributed.
Schedule F
This shows the property held by the trustee as of the close of the accounting period. It identifies the
assets in detail and shows both their carry value and their fair market value.
Schedule G
Tracks changes in form to trust assets, for example when funds are transferred from one bank
account to another.
Schedule H
Identifies all securities transactions during the period of account.
Schedule I
Identifies any money that may be owed by the trust. In this case, it summarizes the loan activity
during the period of account from the Reverse Mortgage on the trust real property located at
_______________. This amount is not reflected on the Schedule F (Assets on Hand at the End of
the Account). The total value of the condo should be reduced by this outstanding liability.
Report of the Administration of the _________ Family Trust for _____
March 18, 2016
Page three
3.
Liabilities of the Trust
As of December 31, ______, the Trust had the following known liabilities:
Attorneys' fees payable to Jackson & Efting, attorneys for Trustee (ongoing)
Trustee's fees payable to TRUSTEE, Trustee (ongoing)
Accountant's fees payable to ______________.
Tax liabilities to the IRS and FTB (assessed yearly)
Estate tax liability to the United States Treasury
4.
Trustee's Compensation during this account period
The Trustee was paid ____________ compensation from the Trust during this account period.
5.
Agents Hired by the Trustee
______________ (Attorney)
Relationship to Trustee: none
_______________ was paid ___________ from the Trust during this accounting period.
_________________ (Accounting Firm)
Relationship to Trustee: none
Used for preparation of Tax Returns
6.
Petition to the Court
The California Probate Code requires a Trustee to inform you that you have the right to petition the
Superior Court of California ("Court"), pursuant to California Probate Code Section 17200, to obtain
Court review of this account and of the acts of the Trustee. In addition, Trustee has the right to
petition the Court for approval of this account. To avoid the expense of such a petition, Trustee will
ask for each beneficiary's consent to, and approval of, the accounting
7.
Actions for Breach of Trust
Pursuant to California law you need to be told that claims against a Trustee for breach of trust may
not be made after the expiration of three (3) years from the date you receive an account, or report,
giving rise to the claim.
Report of the Administration of the _________ Family Trust for _____
March 18, 2016
Page four
(If the trust agreement allows)
NOTICE TO BENEFICIARIES
YOU HAVE [insert “180 days” or the period specified in the trust instrument, whichever is
longer] FROM YOUR RECEIPT OF THIS ACCOUNT OR REPORT TO MAKE AN OBJECTION
TO ANY ITEM SET FORTH IN THIS ACCOUNT OR REPORT. ANY OBJECTION YOU MAKE
MUST BE IN WRITING; IT MUST BE DELIVERED TO THE TRUSTEE WITHIN THE PERIOD
STATED ABOVE; AND IT MUST STATE YOUR OBJECTION. YOUR FAILURE TO DELIVER
A WRITTEN OBJECTION TO THE TRUSTEE WITHIN THE PERIOD STATED ABOVE WILL
PERMANENTLY PREVENT YOU FROM LATER ASSERTING THIS OBJECTION AGAINST
THE TRUSTEE. IF YOU DO MAKE AN OBJECTION TO THE TRUSTEE, THE THREE-YEAR
PERIOD PROVIDED IN SECTION 16460 OF THE PROBATE CODE FOR COMMENCEMENT
OF LITIGATION WILL APPLY TO CLAIMS BASED ON YOUR OBJECTION AND WILL
BEGIN TO RUN ON THE DATE THAT YOU RECEIVE THIS ACCOUNT OR REPORT.
Should you have any questions or wish to seek additional information, please feel free to contact me.
Once you have received this report, please sign below acknowledging your receipt of this letter and the
accounting, and send this letter back to us in the enclosed envelope.
Cordially,
cc:
Trustee
Received by: ___________________________
T:\PFAC\Accounting Notice.docx
on ____________, 2015