(1) A beneficiary may not commence a proceeding against a trustee for breach of trust more than one year after the date that the beneficiary or a person who may represent and bind the beneficiary, as provided in part 3 of this article 5, 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. (2) 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. (3) If subsection (1) of this section does not apply, a judicial proceeding by a beneficiary against a trustee for breach of trust must be commenced within three years after the first to occur of: (a) The removal or resignation of the trustee; (b) The termination of the beneficiary's interest in the trust; or (c) The termination of the trust. (4) For purposes of subsection (1) of this section, a beneficiary is deemed to have been sent a report if: (a) In the case of a beneficiary having capacity, it is sent to the beneficiary; or (b) In the case of a beneficiary who, pursuant to part 3 of this article 5, may be represented and bound by another person, it is sent to the other person. (5) This section does not preclude an action to recover for fraud or misrepresentation related to the report.
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