Section 7785.1 - [Effective 10/14/2024] Nonjudicial account settlement(a) Election.--A trustee may elect to proceed under this section to obtain a nonjudicial settlement of account when: (1) the trust terminates in whole or in part;(2) the trustee ceases or intends to cease to serve for any reason; or(3) the trustee seeks discharge for an interim accounting period when the trust is continuing.(b)Mandatory notice.--Within a reasonable time after a trustee elects to proceed under this section, the trustee shall give notice of a request for nonjudicial account settlement in the manner and to the extent required by section 7709(a), (b) and (c) (relating to methods and waiver of notice - UTC 109) to: (1) the qualified beneficiaries of the trust;(2) any other beneficiary who has sent the trustee a written request for notice;(3) any person who has the notification rights of a beneficiary under section 7710 (relating to notice; others treated as beneficiaries - UTC 110); and(4) any cotrustee, trust director or similar fiduciary or successor trustee.(c) Permissive notice.--The trustee may also provide notice to any other person who the trustee reasonably believes may have an interest in the trust.(d) Representation.--Whether notice is mandatory or permissive, the trustee may give notice to a representative in accordance with Subchapter C (relating to representation). The time period for the presumption of the representative's acceptance of the representation shall be deemed to run concurrently with the notice period provided under this section.(e)Contents of notice.--The notice under subsection (b) or (c) shall provide: (1) The reason for providing notice under this section.(2) To the extent applicable, the proposed distribution of the net assets of the trust, including the distributees and proportions to be distributed.(3) To the extent applicable, an estimate of disbursements anticipated to be made prior to distribution, including legal fees and trustee fees, if any.(4) Trust account statements showing all transactions, the fair market value of all assets and realized and unrealized gains and losses on assets held in the account for 30 months prior to the date a trust terminates, the cessation of the trustee's service or statement of intent to cease to serve, or the end of the interim accounting period, or for the entire term of the trust if the term of the trust is shorter than the 30-month period.(5) A statement that the trustee seeks settlement of the account of the trust, including the period of time for which the trustee seeks discharge of the account of the trust, and that clearly and conspicuously states that claims against a trustee under Subchapter I (relating to liability of trustees and rights of persons dealing with trustees) and section 7754 (relating to actions contesting validity of revocable trust), if applicable, will be forever barred if no objections are received within the time period described in subsection (g).(6) The name and mailing address of the trustee.(7) The name and telephone number of a person who may be contacted for additional information.(f) Distributions.--To the extent applicable, distributions from a terminating trust, and any fees and expenses due or anticipated as of the date that the settlement of account is requested, may be held by or on behalf of the trustee until the settlement of account is approved or deemed approved as provided by this section.(g) Objection.--A person provided notice under subsection (b) or (c) may object to the settlement of account by giving written notice to the trustee within 60 days after the notice was sent. If a person given notice under subsection (b) or (c) makes timely objections to the settlement of account, the trustee or the person making the objections may: (1) submit the written objection to the court and commence a proceeding for its resolution; or(2) resolve the objection by nonjudicial settlement agreement under section 7710.1 (relating to nonjudicial settlement agreements - UTC 111) or otherwise.(h)Approval.--If no timely objections are raised under subsection (g), or objections are resolved as provided by subsection (g), the settlement of account shall be deemed approved and any assets held in trust shall, within a reasonable time thereafter, be distributed subject to payment of expenses as provided in subsection (f) or shall continue to be administered in trust subject to payment of expenses.(i) Reliance.--The trustee may rely upon the written statement of a person receiving notice that the person does not object.(j) Limitation of action and preclusive effect.-- (1) When a settlement of account is deemed approved under this section for a terminated trust or with respect to the duties of a trustee who ceased to serve or stated an intent to cease to serve, each person who was sent notice as provided by subsection (b) or (c) is barred from bringing a claim against the trustee or challenging the distribution of assets of the trust to the same extent and with the same preclusive effect as if the court had entered a final, unappealable order approving the trustee's final account.(2) When a settlement of account for a trustee seeking final settlement of an interim trust account is deemed approved under this section, each person who was sent notice as provided by subsection (b) or (c) is barred from bringing a claim against the trustee for the period of the interim trust account to the same extent and with the same preclusive effect as if the court had entered a final, unappealable order approving the trustee's interim trust account.(k) Representation.--The provisions of Subchapter C shall apply to an account settlement under this section.(l) Filing account.--Nothing in this section shall preclude a trustee from proceeding under section 7797 (relating to filing accounts) or 7710.1.Added by P.L. (number not assigned at time of publication) 2024 No. 64,§ 9, eff. 10/14/2024.