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<p class="MsoNormal"><span style="font-size:11.0pt;font-family:"Calibri","sans-serif";color:#1F497D">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.
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<p class="MsoNormal" style="text-align:justify"><span style="font-size:10.0pt;font-family:"Courier New";color:#1F497D">Marcus J. Fry<o:p></o:p></span></p>
<p class="MsoNormal"><span style="font-size:10.0pt;font-family:"Courier New";color:#1F497D">Lyon, Weigand & Gustafson, P.S.</span><span style="color:#1F497D">
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<p class="MsoNormal"><b><span style="font-size:10.0pt;font-family:"Tahoma","sans-serif"">From:</span></b><span style="font-size:10.0pt;font-family:"Tahoma","sans-serif""> wsbapt-bounces@lists.wsbarppt.com [mailto:wsbapt-bounces@lists.wsbarppt.com]
<b>On Behalf Of </b>Felicia Value, Attorney at Law<br>
<b>Sent:</b> Thursday, May 14, 2015 3:35 PM<br>
<b>To:</b> WSB Listserv<br>
<b>Subject:</b> [WSBAPT] Trustee Accounting Question<o:p></o:p></span></p>
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<p class="MsoNormal"><span style="font-family:"Calibri","sans-serif";color:black">Colleagues,
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<p class="MsoNormal"><span style="font-family:"Calibri","sans-serif";color:black">I’m writing a letter to a trustee client and trying to include concrete guidance re: when he
<u>must</u> provide beneficiaries with an accounting, and also how he can start the clock running on a time-bar against claims of trust mismanagement.
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<p class="MsoNormal"><span style="font-family:"Calibri","sans-serif";color:black"> <o:p></o:p></span></p>
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<p class="MsoNormal"><span style="font-family:"Calibri","sans-serif";color:black">I am seeking a second opinion on my reading of the statues. Is this an accurate statement of current law?:
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<p class="MsoNormal"><span style="font-family:"Calibri","sans-serif";color:black">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.<o:p></o:p></span></p>
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<p class="MsoNormal"><span style="font-family:"Calibri","sans-serif";color:black">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.
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<p class="MsoNormal"><span style="font-family:"Calibri","sans-serif";color:black">Thanks in advance for your learned advice!<o:p></o:p></span></p>
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<p class="MsoNormal"><span style="font-family:"Calibri","sans-serif";color:black"> <o:p></o:p></span></p>
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<p class="MsoNormal" style="margin-bottom:12.0pt"><span style="font-family:"Calibri","sans-serif";color:black">Felicia Value<br>
Attorney at Law<br>
PO Box 578/116 North Third Street<br>
La Conner, WA 98257<br>
(360) 466-2088<br>
<a href="http://www.skagitprobate.com">www.skagitprobate.com</a><br>
<br>
NOTE: I do not use encrypted email. Messages sent to or<br>
from my office via email are not secure and may not be<br>
protected by attorney client privilege. This email address<br>
is not monitored at all times. If your matter is urgent,<br>
please phone my office during regular business hours.<br>
<br>
This email may contain confidential material protected by<br>
attorney/client privilege, and is intended for use solely by the above<br>
referenced recipient. Any review, copying, printing, disclosure,<br>
distribution, or other use by any person or entity is strictly<br>
prohibited and may be unlawful. If you are not the named recipient, or<br>
believe you have received this email in error, please reply to the<br>
sender and delete the copy you received. Thank you.<o:p></o:p></span></p>
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