                                 CODE OF VIRGINIA

LIMITATION OF ACTION AGAINST TRUSTEE (§ 64.2-796)

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

B. A report adequately discloses the existence of a potential claim for breach
of trust if it provides sufficient information so that the beneficiary or
representative knows of the potential claim or should have inquired into its
existence.

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

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

   2. The termination of the beneficiary&#8217;s interest in the trust; or

   3. The termination of the trust.

D. Whenever fraud has been perpetrated in connection with any proceeding or in
any statement filed under this chapter, or if fraud is used to avoid or
circumvent the provisions or purposes of this chapter, any person injured
thereby may obtain appropriate relief against the perpetrator of the fraud or
restitution from any person benefiting from the fraud, whether innocent or not,
except for a bona fide purchaser. Any proceeding shall be commenced within two
years after the fraud is discovered, but no proceeding may be brought against
one not a perpetrator of the fraud later than five years after the time the
fraud is committed. This section does not apply to remedies for fraud practiced
on a decedent during his lifetime that affects the succession of his estate.

E. The provisions of this section shall not operate to reduce the period of
limitations applicable to actions and suits governed by &#xA7; 8.01-245.

HISTORY: 2005, c. 935, § 55-550.05; 2012, c. 614.