SB282 Summary

• Amends Section 19-3B-1005 to clarify that a beneficiary must receive a written report adequately disclosing a potential breach of trust to start the two-year statute of limitations for suing a trustee.

• Defines an adequate report as an account statement or other written disclosure providing sufficient information for the beneficiary to know of or inquire into a potential claim.

• Adds Section 19-3B-1306 to establish a procedure allowing trustees to obtain settlement of accounts when a trust terminates, a trustee resigns or is removed, or when seeking discharge for an interim accounting period.

• Requires trustees to provide qualified beneficiaries with detailed information including fair market values, two-year accounting history, anticipated receipts/disbursements, remaining fees, trustee contact information, and notice that claims will be barred if no objections are filed within 45 days.

• Permits beneficiaries to object to disclosed acts or omissions within 45 days, with unresolved objections subject to court resolution or nonjudicial settlement agreements; bars claims after the 45-day period with the same preclusive effect as a court-approved final account.

• Effective January 1, 2022.