55-550.05 - Limitation of action against trustee. - Virginia Statutes

§ 55-550.05. Limitation of action against trustee.

A. A beneficiary may not commence a proceeding against a trustee for breachof trust more than one year after the date the beneficiary or arepresentative of the beneficiary was sent a report that adequately disclosedthe existence of a potential claim for breach of trust and informed thebeneficiary of the time allowed for commencing a proceeding.

B. A report adequately discloses the existence of a potential claim forbreach of trust if it provides sufficient information so that the beneficiaryor representative knows of the potential claim or should have inquired intoits existence.

C. If subsection A does not apply, a judicial proceeding by a beneficiaryagainst a trustee for breach of trust shall be commenced within five yearsafter the first to occur of:

1. The removal, resignation, or death of the trustee;

2. The termination of the beneficiary's interest in the trust; or

3. The termination of the trust.

D. Whenever fraud has been perpetrated in connection with any proceeding orin any statement filed under this chapter, or if fraud is used to avoid orcircumvent the provisions or purposes of this chapter, any person injuredthereby may obtain appropriate relief against the perpetrator of the fraud orrestitution from any person benefiting from the fraud, whether innocent ornot, except for a bona fide purchaser. Any proceeding shall be commencedwithin two years after the fraud is discovered, but no proceeding may bebrought against one not a perpetrator of the fraud later than five yearsafter the time the fraud is committed. This section does not apply toremedies for fraud practiced on a decedent during his lifetime which affectsthe succession of his estate.

E. The provisions of this section shall not operate to reduce the period oflimitations applicable to actions and suits governed by § 8.01-245.

(2005, c. 935.)