2017 Delaware Code
Title 12 - Decedents' Estates and Fiduciary Relations
CHAPTER 35. TRUSTS
Subchapter VII Liability of Trustees and Rights of Persons Dealing With Trustee
§ 3585. Limitation of action against trustee following trustee's report [For application of this section, see 81 Del. Laws, c. 149, § 6].

(a) A beneficiary may initiate a proceeding against a trustee for breach of trust until the first to occur of:

(1) Two years after the date the beneficiary was sent a report that adequately disclosed the facts constituting a claim;

(2) In the case of any trustee who has resigned, been removed or ceased to serve as trustee for any other reason (including on account of the termination of the trust by reason of liquidation or by reason of a merger or similar transaction described in § 3341 of this title), 120 days after the date the beneficiary was sent a report that: (i) notifies the beneficiary that the trustee has ceased to serve; (ii) adequately discloses the facts constituting a claim; and (iii) adequately discloses the time allowed under this section for initiating proceedings against the former trustee; or

(3) The date the proceeding was otherwise precluded by adjudication, release, consent, limitation or pursuant to the terms of the governing instrument.

(b) A report adequately discloses the facts constituting a claim if it provides sufficient information so that the beneficiary knows of the claim or reasonably should have inquired into its existence.

(c) For the purpose of subsection (a) of this section, a beneficiary is deemed to have been sent a report if:

(1) In the case of a beneficiary having capacity, it is sent to the beneficiary;

(2) In the case of a beneficiary who under § 3547 of this title may be represented and bound by another person, it is sent to the other person; or

(3) In the case of a beneficiary who under § 3303(d) of this title is represented and bound by a designated representative, it is sent to the designated representative.

(d) If subsection (a) of this section does not apply, a judicial proceeding by a beneficiary against a trustee for breach of trust must be commenced within 5 years after 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.

(e) This section does not preclude an action to recover for fraud or misrepresentation related to the report.

72 Del. Laws, c. 388, § 7; 76 Del. Laws, c. 254, § 15; 81 Del. Laws, c. 149, § 2.;