7785 - Limitation of action against trustee.
§ 7785. Limitation of action against trustee. (a) Imposed by trustee's written reports.-- (1) A beneficiary may not challenge a transaction or assert a claim against a trustee for breach of trust on the basis of a transaction if: (i) the trustee provided the beneficiary with a written report of the trust's assets and their market values if feasible, the trust's liabilities and the trust's receipts and disbursements for the year in which the transaction occurred and for each of the four subsequent calendar years; (ii) the transaction was disclosed in the first of the five reports to which subparagraph (i) refers; (iii) the beneficiary did not notify the trustee in writing within six months after receiving the fifth annual report that the beneficiary objects to the transaction and provide the basis in writing for that objection; and (iv) all reports were accompanied by a conspicuous written statement describing the effect of this paragraph. (2) A claim not barred by paragraph (1) may nevertheless be barred by subsection (b). (b) Five-year absolute bar.--If not previously barred by subsection (a) or section 7798 (relating to failure to present claim at audit): (1) Except as provided in paragraph (2) or (3), a claim by a beneficiary against a trustee, including a claim preserved by the beneficiary notifying the trustee in the manner described in subsection (a), shall be barred five years after the first to occur of the following events: (i) the date after the removal, resignation or death of the trustee on which the beneficiary was given the notice required by section 7780.3(g) (relating to duty to inform and report); (ii) the termination of the beneficiary's interest in the trust; or (iii) the termination of the trust. (2) Except as set forth in paragraph (3), if the first to occur of the events set forth in paragraph (1) occurred before November 6, 2006, a claim described in paragraph (1) shall be barred five years after November 6, 2006. (3) A claim described in paragraph (1) is not barred if, prior to the respective date set forth in either paragraph (1) or (2), the trustee has filed an account with the court or the beneficiary has petitioned the court to compel the trustee to file an account. Cross References. Section 7785 is referred to in section 7772 of this title.