(a)Upon the occurrence of an event terminating or partially terminating a trust, or upon the trustee's removal or resignation, the trustee shall proceed to distribute the trust property to the persons entitled to it within a reasonable period of time, subject to the right of the trustee to retain a reasonable reserve for the payment of debts, expenses, attorney fees, and taxes.
(b)A trustee may send a notice pursuant to this section seeking to be relieved from liability upon such trustee's removal or resignation, or upon the full or partial termination of the trust.
(c)A notice sent by a trustee under this section must include:
(1)A statement of the fair market value of the trust's assets and the trust's liabilities, known to the trustee, as of a date specified in the notice, which dat
Free access — add to your briefcase to read the full text and ask questions with AI
(a) Upon the occurrence of an event terminating or partially terminating a trust, or upon the trustee's removal or resignation, the trustee shall proceed to distribute the trust property to the persons entitled to it within a reasonable period of time, subject to the right of the trustee to retain a reasonable reserve for the payment of debts, expenses, attorney fees, and taxes. (b) A trustee may send a notice pursuant to this section seeking to be relieved from liability upon such trustee's removal or resignation, or upon the full or partial termination of the trust. (c) A notice sent by a trustee under this section must include: (1) A statement of the fair market value of the trust's assets and the trust's liabilities, known to the trustee, as of a date specified in the notice, which date must not be more than thirty (30) days prior to the date the notice is sent; (2) (A) A statement of the following during the time period determined under subdivisions (c)(2)(B)-(D): (i) The trust's receipts, including the source and the amount of each receipt; (ii) The amount and recipient of each trust disbursement, including: (a) Distributions to or for the benefit of one (1) or more beneficiaries; and (b) All fees, expenses, and taxes paid; and (iii) A reasonable estimate of the remaining fees and costs to be paid by the trust prior to the removal, resignation, or termination of the trustee sending the notice, as applicable; (B) A statement required under subdivision (c)(2)(A) must cover the time period that begins with the most recent of: (i) The date of acceptance of the trusteeship by the trustee sending the notice; (ii) The ending date of the period for which an accounting was last approved by the court pursuant to § 35-15-205 ; and (iii) If a notice was previously sent in compliance with this section by the trustee sending the notice, then the date upon which the time period under subsection (f) terminated and no person timely objected in a writing delivered to the trustee, or, to the extent an objection was timely made in a writing and delivered to the trustee, then the date on which the objections were resolved by nonjudicial settlement agreement under § 35-15-111 ; (C) The ending date of the time period covered by a statement required under subdivision (c)(2)(A) must not be more than thirty (30) days prior to the date the notice is sent; and (D) The time period covered by a statement required under subdivision (c)(2)(A) must not exceed three (3) years; (3) The beginning and ending dates of the time period covered by the statement required under subdivision (c)(2)(A); (4) A proposal for distribution; (5) Notice that the trust is terminating in whole or in part, or that the trustee has resigned or has been removed; (6) Notice that claims against a trustee under §§ 35-15-604 and 35-15-1005 , as applicable, are barred if no objections specifically referencing the notice are received in writing by the trustee within forty-five (45) days after receipt of the notice by the person designated in subsections (d) and (e); (7) If the trustee sending the notice is an individual trustee, the name, telephone number, and mailing or electronic mail address of the trustee sending the notice; and (8) If the trustee sending the notice is a corporate trustee, the name, telephone number, and mailing or electronic mail address of a representative of the corporate trustee who may be contacted for additional information. (d) A notice sent by a trustee under this section must be sent to: (1) The grantor, if living; (2) Each qualified beneficiary or such qualified beneficiary's representative under part 3 of this chapter to the extent there is no material conflict of interest; and (3) All other then-serving trustees, trust advisors, and trust protectors known to the trustee sending the notice. (e) The trustee may also provide the notice to a person not described in subsection (d) whom the trustee reasonably believes may also have an interest in the trust. (f) The right of any person described in subsection (d), or to whom the trustee sent a notice pursuant to subsection (e), to object to the notice under this section terminates if the person does not notify the trustee in writing of an objection within forty-five (45) days after the person received the notice. (g) If the trustee sending the notice complies with this section, and if a person described in subsection (d), or to whom the trustee sent a notice pursuant to subsection (e), does not object within the time period prescribed in subsection (f), then the trustee shall, within a reasonable period of time following the expiration of such period, distribute the trust's assets as provided in the proposal for distribution included in the notice. (h) If the trustee sending the notice complies with this section, and if a person described in subsection (d) or a person to whom the trustee has distributed a notice pursuant to subsection (e) does not object within the time period prescribed in subsection (f), then the trustee sending the notice is relieved from any liability for the most recent continuous period that the trustee served as trustee of the trust, and the persons who received notice under this section are time barred from: (1) Commencing a judicial proceeding to contest the validity of the trust, except as otherwise provided in § 35-15-604 ; (2) Commencing a judicial proceeding for a claim of breach of trust against the trustee to the same extent and with the same preclusive effect as if the court had entered a final order approving the trustee's account under § 35-15-205 ; and (3) Commencing a judicial proceeding for a claim of breach of fiduciary duty against a co-trustee, trust advisor, or trust protector for failure to object to the trustee's notice under this section. (i) A trustee may rely upon the written statement of a person indicating no objection to the notice as a failure to object within the time period prescribed in subsection (f), regardless of whether the time period has terminated. (j) If the trustee receives a written objection within the period prescribed in subsection (f) from a person to whom the trustee sent a notice, then the trustee may resolve the objection by nonjudicial settlement agreement under § 35-15-111 or seek judicial relief under § 35-15-205 . (k) For the purpose of determining the date a notice was received, if the confirmation of the date of receipt is unavailable, then the notice is presumed to have been received ten (10) business days after the date of mailing. (l) This section does not preclude a trustee from proceeding under § 35-15-205 to have the trustee's accounts reviewed and settled by the court. (m) If the person entitled to the trust property under subsection (a) is the trustee of another trust, or the successor trustee of the same trust, and there is a vacancy in the office of that trustee, then the otherwise applicable provisions of this chapter apply, including §§ 35-15-704 and 35-15-707 . A vacancy in the office of a trustee, as described in this subsection (m), does not change the notice and time periods required by this section.