[WSBAPT] Trustee Accounting Question

Sun May 17 09:34:04 PDT 2015

Thank you Karen!

From: Karen E. Boxx 
Sent: Friday, May 15, 2015 11:40 AM
To: WSBA Probate & Trust Listserv 
Subject: Re: [WSBAPT] Trustee Accounting Question

Felicia, here’s what was intended by the rewrite of 11.96A.070:

-        The 3 year SOL begins to run when the trustee gives a report to the beneficiary disclosing the info that would be the basis of a claim and tells the benie that the SOL has started to run.  The report doesn’t have to be in the form described in paragraph b or have to give all that info BUT a report in that form gets the presumption that there was adequate disclosure that the statute starts to run.  If no report, then under 11.96A.070(c), the SOL is 3 years from the end of the trustee’s term, the termination of the trust or the termination of the benie’s interest in the trust (whichever happens first).  The revised statute of limitations is explained on page 882 of Katie Groblewski’s and my law review article:  88 Wash.L.Rev. 813 (2013).  http://ssrn.com/abstract=2340718 

karen

From: wsbapt-bounces at lists.wsbarppt.com [mailto:wsbapt-bounces at lists.wsbarppt.com] On Behalf Of Sam Furgason
Sent: Friday, May 15, 2015 10:59 AM
To: WSBA Probate & Trust Listserv
Subject: Re: [WSBAPT] Trustee Accounting Question

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

      NOTE: I do not use encrypted email. Messages sent to or
      from my office via email are not secure and may not be
      protected by attorney client privilege. This email address
      is not monitored at all times. If your matter is urgent,
      please phone my office during regular business hours.

      This email may contain confidential material protected by
      attorney/client privilege, and is intended for use solely by the above
      referenced recipient. Any review, copying, printing, disclosure,
      distribution, or other use by any person or entity is strictly
      prohibited and may be unlawful. If you are not the named recipient, or
      believe you have received this email in error, please reply to the
      sender and delete the copy you received. Thank you.

--------------------------------------------------------------------------------
_______________________________________________
WSBAPT mailing list
WSBAPT at lists.wsbarppt.com
http://mailman.fsr.com/mailman/listinfo/wsbapt
-------------- next part --------------
An HTML attachment was scrubbed...
URL: <http://mailman.fsr.com/pipermail/wsbapt/attachments/20150517/80db5641/attachment.html>