75-7-1005 - Limitation of action against trustee.
75-7-1005. Limitation of action against trustee.
(1) A beneficiary may not commence a proceeding against a trustee for breach of trustmore than six months after the date that the beneficiary or a person who may represent and bindthe beneficiary was sent a report that adequately disclosed the existence of a potential claim forbreach 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 itprovides sufficient information so that the beneficiary or representative knows of the potentialclaim or should have inquired into its existence.
(3) If Subsection (1) does not apply, a judicial proceeding by a beneficiary against atrustee for breach of trust must be commenced within one year after the first to occur of:
(a) the removal, resignation, or death of the trustee;
(b) the termination of the beneficiary's interest in the trust; or
(c) the termination of the trust.
(4) This section does not preclude an action to recover for fraud or misrepresentationrelated to the report.
Enacted by Chapter 89, 2004 General Session