59-18-05. (1005) Limitation of action against trustee

59-18-05. (1005) Limitation of action against trustee

1. A beneficiary may not commence a proceeding against a trustee for breach of trust

more than one year after the date the beneficiary or a representative of the beneficiary

was sent a report that adequately disclosed the existence of a potential claim for

breach of trust and informed the beneficiary in the report or in a separate notice

accompanying the report 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 does not apply, a judicial proceeding by a beneficiary against a trustee

for breach of trust must be commenced within five years after whichever occurs first:

the removal, resignation, or death of the trustee; the termination of the beneficiary's

interest in the trust; or the termination of the trust.