§ 15-5-1005 — Limitation of actions against trustee

(1) A beneficiary may not
commence a proceeding against a trustee for breach of trust more than one year
after the date that the beneficiary or a person who may represent and bind the
beneficiary, as provided in part 3 of this article 5, was sent a report that adequately
disclosed the existence of a potential claim for breach of trust and informed the
beneficiary of the time allowed for commencing a proceeding.

(2) A report 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.

(3) If subsection (1) of this section does not apply, a judicial proceeding by a
beneficiary against a trustee for breach of trust must be commenced within three
years after the first to occur of:

(a) The removal or resignation of the trustee;

(b) The termination of the beneficiary's interest in the trust; or

(c) The termination of the trust.

(4) For purposes of subsection (1) of this section, a beneficiary is deemed to
have been sent a report if:

(a) In the case of a beneficiary having capacity, it is sent to the beneficiary;
or

(b) In the case of a beneficiary who, pursuant to part 3 of this article 5, may
be represented and bound by another person, it is sent to the other person.

(5) This section does not preclude an action to recover for fraud or
misrepresentation related to the report.

Legislative History

Source: L. 2018: Entire article added, (SB 18-180), ch. 169, p. 1185, � 1, effective January 1, 2019.