(a) A person may initiate a proceeding against a trustee for breach of trust or other claim until the first to occur of:
(1) One year after the date the person was sent a report that adequately disclosed the facts constituting a claim provided, however, that if the governing instrument provides that claims shall survive for a period longer than 1 year after such date, then claims shall survive for the period specified in the governing instrument;
(2) In the case of any trustee who is resigning, has resigned, is being removed, has been removed, is ceasing to serve, or has 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:
a. Notifies the beneficiary that the trustee is resigning, has resigned, is being removed, has been removed, is ceasing to serve, or has ceased to serve;
b. Adequately discloses the facts constituting a claim; and
c. Adequately discloses the time allowed under this section for initiating proceedings against the former trustee;
provided that the trustee transfers the trust property to the appropriate successors in interest within a reasonable period of time following the expiration of the 120-day period; 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 person knows of the claim or reasonably should have inquired into its existence.
(c) For the purpose of subsection (a) of this section, a person is deemed to have been sent a report if:
(1) In the case of a person having capacity, it is sent to the person;
(2) In the case of a person who is a beneficiary and 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 person who is a beneficiary and 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 person against a trustee for breach of trust or other claim 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 person'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 or an action related to a trustee's administration of assets during or following expiration of any period provided in this section.