[WSBAPT] Trustee Accounting Question

[Sam Furgason]

Correction: strike "some" insert "no"
s 
-----Original Message-----
From: Sam Furgason [mailto:sam at furgasons.com]
Sent: Thursday, May 14, 2015 07:26 PM
To: ''WSBA Probate & Trust Listserv''
Subject: Re: [WSBAPT] Trustee Accounting Question

I don’t think 11.106.020 would be open-ended. I think that the various general statutes of limitations would apply: 3 years; 6 years on a written agreement (but the beneficiaries might not be parties to the trust); etc., even if not expressed in a particular section. I doubt that, while 11.106.020 may not set a specific limit, there is some limitations period once the beneficiaries have been given information. See Ch. 4.16 for a bunch, and there are others scattered all over the place. 
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

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