§ 7785. Limitation of action against trustee.
(a) Imposed by trustee's written reports.--
(1) A beneficiary is barred from challenging a transaction or asserting a claim against a trustee for breach of trust if:
(i) the trustee provided the beneficiary at least annually with periodic written financial reports concerning the trust;
(ii) the transaction was disclosed in a report to which subparagraph (i) refers or such report provided sufficient information so that the beneficiary knew or should have known of the potential claim or should have inquired into its existence;
(iii) in the 30 months after a report to which subparagraph (ii) refers was sent by the trustee to the beneficiary, the beneficiary did not notify the trustee in writing that the beneficiary challenges the transaction or asserts a claim and provides in writing the basis for that challenge or assertion; 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 (1.1), (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.
(1.1) A beneficiary who has challenged a transaction or asserted a claim as provided in subsection (a)(1)(iii) may not challenge the transaction or assert the claim against the trustee in a court or an arbitration proceeding commenced more than five years after the date the trustee sent the beneficiary the report described in subsection (a)(1)(i) and (ii).
(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) or (1.1) 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.
(Oct. 27, 2010, P.L.837, No.85, eff. 60 days)
Cross References. Section 7785 is referred to in section 7772 of this title.
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