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Sec. 13.36.100. Limitations on proceedings against trustees.
 (a) Unless resolved or barred under (b) or (c) of this section, and notwithstanding the lack of adequate disclosure, all claims against a trustee who has issued a report received by the beneficiary and who has informed the beneficiary of the location and availability of records for examination by the beneficiary are barred unless a proceeding to assert the claims is commenced within three years after the beneficiary's receipt of the report.
(b) If a trustee petitions a court for an order approving a report that adequately discloses the existence of a potential claim, serves the report on all beneficiaries to be bound by the report, gives the beneficiaries at least 60 days' notice of the court proceeding, and notifies the beneficiary that a claim must be begun within 45 days after the beneficiary is served with notice of the court proceeding, all potential claims of the beneficiaries against the trustee are barred unless the claims are served on the trustee and filed with the court within 45 days after the beneficiaries are served with notice of the court proceeding. (c) If a trustee serves a report on a beneficiary that adequately discloses the existence of a potential claim against the trustee, the trustee informs the beneficiary that a proceeding to assert any claim against the trustee must be commenced by the beneficiary within six months after receipt of the report, and the beneficiary fails to assert a claim against the trustee, all claims of the beneficiary are barred. (d) A beneficiary is considered to have received a report if, being an adult, the report is received by the beneficiary personally, or, if the beneficiary is a person who may be represented and bound by another person under AS 13.06.120 , the report is received by the person who may represent the person under AS 13.06.120 . (e) A report adequately discloses the existence of a potential claim against a trustee if it provides sufficient information for the beneficiary to know of the potential claim or to be expected to reasonably inquire into the existence of a claim with respect to the matter. (f) This section does not apply to claims brought by a beneficiary against a trustee for fraud committed by the trustee. (g) The report of a trustee under this section is considered to provide adequate notice to the beneficiary that there is a time limitation for filing a claim against the trustee if the cover page or top of the first page of the report contains the following language in at least 14 point bold type: "BY RECEIPT OF THIS REPORT, ANY ACTION YOU MAY HAVE AS A BENEFICIARY AGAINST THE TRUSTEE FOR BREACH OF TRUST BASED ON ANY MATTER ADEQUATELY DISCLOSED IN THIS REPORT MAY BE BARRED UNLESS THE ACTION IS BEGUN WITHIN SIX MONTHS AFTER YOU RECEIVE THIS REPORT. IF YOU HAVE ANY QUESTIONS, YOU MAY WISH TO OBTAIN PROFESSIONAL ADVICE REGARDING THIS REPORT." (h) In this section, (1) [Repealed, Sec. 15 ch 66 SLA 2006]. (2) "report" means a final report or an interim report for a certain period, and includes an accounting.
(1)
when the interest is created, it is certain to vest
or terminate no later than 21 years after the death
of an individual then alive; or
(2)
the interest either vests or terminates within 90
years after its creation
[;
OR (3) THE INTEREST IS IN A TRUST AND ALL OR PART
OF THE INCOME OR PRINCIPAL OF THE TRUST MAY BE DISTRIBUTED,
IN THE DISCRETION OF THE TRUSTEE, TO A PERSON WHO
IS LIVING WHEN THE TRUST IS CREATED].
* Sec. 3. AS 34.27.050(b) is amended to read:
(b)
A general power of appointment not presently exercisable
because of a condition precedent is invalid unless the power of appointment is created on or after January
1, 1996, and before the effective date of this Act
and
(1)
when the power is created, the condition precedent
is certain to be satisfied or become impossible
to satisfy no later than 21 years after the death
of an individual then alive; or
(2)
the condition precedent either is satisfied or becomes
impossible to satisfy within 90 years after its creation.
* Sec. 4. AS 34.27.050(c) is amended to read:
(c)
A nongeneral power of appointment or a general testamentary
power of appointment is invalid unless the power
is created on or after January 1, 1996, and before
the effective date of this Act and
(1)
when the power is created, it is certain to be irrevocably
exercised or otherwise to terminate no later than
21 years after the death of an individual then alive;
or
(2)
the power is irrevocably exercised or otherwise terminates
within 90 years after its creation.
*
Sec. 5. AS 34.27.070(a) is amended to read:
(a)
Except as extended by (b) of this section, AS 34.27.050
- 34.27.090 apply to a nonvested property interest
or a power of appointment that is created on or after
January 1, 1996, and before the effective date
of this Act . For purposes of this section, a
nonvested property interest or a power of appointment
created by the exercise of a power of appointment
is created when the power is irrevocably exercised
or when a revocable exercise becomes irrevocable.
*
Sec. 6. AS 34.27.075 is amended to read:
Sec.
34.27.075. Supersession of common law rule. AS 34.27.050 - 34.27.090 supersede the rule of the
common law known as the rule against perpetuities to the extent provided under AS 34.27.050 - 34.27.090
.
*
Sec. 7. AS 34.27.042, added by sec. 1 of this
Act, is retroactive to April 2, 1997, and applies
to nonvested property interests in trusts as described
in that section.
* Sec. 8. This Act takes effect immediately
under AS 01.10.070(c).
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