[WSBAPT] Trustee Accounting Question

[Marcus Fry]

You are correct.  RCW 11.98.072 states that a trustee has a duty to keep the beneficiaries reasonably informed about the activities of the trust.  To my knowledge this has not been defined in case law, but selling a large asset of the trust in my view should be disclosed promptly in addition to the below.

Marcus J. Fry
Lyon, Weigand & Gustafson, P.S.


From: wsbapt-bounces at lists.wsbarppt.com [mailto:wsbapt-bounces at lists.wsbarppt.com] On Behalf Of Felicia Value, Attorney at Law
Sent: Thursday, May 14, 2015 3:35 PM
To: WSB Listserv
Subject: [WSBAPT] Trustee Accounting Question

Colleagues,

I’m writing a letter to a trustee client and trying to include concrete guidance re: when he must provide beneficiaries with an accounting, and also how he can start the clock running on a time-bar against claims of trust mismanagement.

I am seeking a second opinion on my reading of the statues.  Is this an accurate statement of current law?:
RCW 11.106.020 requires the trustee of an irrevocable trust to give trust beneficiaries a written statement each year of current receipts and disbursements of trust income and principal.  These annual statements do not begin any statute of limitations which would time-bar a beneficiary from challenging trustee actions.

RCW 11.96A.070 describes an optional “report” a trustee may send to trust beneficiaries.  The statute sets out the contents of the report,  which are more extensive than the annual accounting described in RCW 11.106.020.  Delivery of a report to a beneficiary starts the clock on a three-year statute of limitations.  Three years after delivery of a report, a beneficiary is time-barred from beginning an action against the trustee for breach of trust committed more than three years prior.  This is the only time-bar available to Washington trustees for challenges from beneficiaries.
Thanks in advance for your learned advice!

Felicia Value
Attorney at Law
PO Box 578/116 North Third Street
La Conner, WA 98257
(360) 466-2088
www.skagitprobate.com<http://www.skagitprobate.com>

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