Estates Code section 1301.154 requires the trustee to file an annual account in the same manner and form that is required of the guardian. Estates Code section 1163.001 provides detailed requirements for what must be included in the initial annual accounting (e.g., depository information on cash balances, information related to rental properties, or required information relating to certain bonds, notes, and other securities). See Tex. Est. Code § 1163.001. Section 1163.001 should be reviewed carefully, and this form should be modified as appropriate to comply with the statutory requirements.
[Caption. See § 3 of the Introduction in this manual.]
First Annual Account of Trustee of Management Trust
[Name of trustee], Trustee, court-appointed trustee of the management trust created for the sole benefit of [name of beneficiary], Beneficiary, presents this verified First Annual Account of Trustee of Management Trust, from [date] through [date], pursuant to section 1301.154 of the Texas Estates Code.
1.Guardianship Estate. [Name of guardian], Guardian, guardian of the estate of [name of ward], was appointed guardian of the estate on [date]. Guardian’s final account was approved by this Court on [date].
2.Trust Beneficiary. The trust beneficiary is [name of beneficiary]. [He/She] was born on [date of birth].
3.The Trust. The trust was established by order of this Court dated [date]. It was funded with $[amount] from [describe source of funds, e.g., funds awarded to Beneficiary and held in various guardianship accounts belonging to the guardianship estate].
4.Changes in Property of the Trust. No changes to the property of the trust occurred other than those listed in paragraph 11. of this account and more fully described in the statement of account activity, detailing all receipts and disbursements for the accounting period. The statement of account activity will be provided to the Court under separate cover.
5.Claims against the Trust. [There were no claims presented to Trustee during the accounting period./The following claim[s] [was/were] presented to Trustee during the accounting period and the following action[s] [was/were] taken: [list claims and actions taken, along with which claims have been the subject of a lawsuit, if any].]
6.Property of the Trust. A complete description of all property belonging to the trust that came into the possession or knowledge of Trustee as of the first day of the accounting period appears on the schedule of assets, attached as Exhibit [exhibit number/letter] and incorporated by reference.
7.Receipts. A list of all revenue and income received by Trustee for the benefit of Beneficiary during the period covered by the annual account is set out on the statement of account activity and summarized in paragraph 11. of this account.
8.Disbursements. Disbursements made and expenses incurred on behalf of and for the benefit of Beneficiary are listed in paragraph 11. of this account and more fully described in the statement of account activity.
9.Description of Property Being Administered. No property, other than cash assets and mutual funds that remain in the trust, is subject to the control and management of Trustee. A complete description of all assets subject to the control and management of Trustee appears on the schedule of assets, which is attached as Exhibit [exhibit number/letter] and incorporated by reference. Exhibit [exhibit number/letter], a verification of funds on deposit, states the total principal under management as of [date] in the amount of $[amount].
10.Trustee Fees. The fee schedule for this accounting period was previously approved by the Court. The fee schedule was attached to the trust agreement at the time of approval. The fees taken for this accounting period are $[amount] and are set out in detail in Exhibit [exhibit number/letter]. Fees were calculated using the fee schedule attached to the original trust agreement and attached as Exhibit [exhibit number/letter].
11.Summary of Receipts and Disbursements
Beginning cash as received on [date] from [payor]: $[amount]
Receipts
[Name of payor]: $[amount]
Total receipts of interest/income: $[amount]
Total receipts of principal: $[amount]
Total beginning cash and receipts: $[amount]
Disbursements
[Name of payee]: $[amount]
Total disbursements: $[amount]
Recapitulation
Beginning cash and receipts: $[amount]
Unrealized capital [gain/loss]: $[amount]
Less Disbursements: <$[amount]>
Ending balance: $[amount]
12.Total Value of Estate at End of Accounting Period. The total value of the Trust as of [date] is $[amount], as evidenced by the verification of funds attached hereto as Exhibit [exhibit number/letter].
13.Taxes. A grantor letter has been furnished to Beneficiary regarding taxable income from this trust. The taxable income from this trust should be reported on Beneficiary’s individual income tax return (IRS Form 1040).
[Name of trustee] prays that citation and notice be issued as required by law unless waived; that the Court audit, settle, and approve this annual account; and that the Court enter such other orders as may be proper.
Respectfully submitted,
Trustee
[Name and title of representative]
[Name of entity]
[Name]
Attorney for Trustee
State Bar No.:
[Email address]
[Address]
[Telephone]
[Telecopier]
Trustee’s Affidavit
[Name of trustee], Trustee, appeared in person before me today and stated the following under oath: that the annual account contains a true, correct, and complete statement of the matters to which this account relates, that no bond premium is due or owing, that all tax returns for the trust have been filed during the accounting period, and that all taxes owed during the accounting period on behalf of the trust have been paid.
[Name of affiant]
Signed under oath before me by [name], a trust officer of [name of trustee], on [date].
Notary Public, State of Texas
|
Attach exhibit(s). |