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Trust directs Trustee to pay income to Aunt Lila for life, then distribute principal to Settlor's grandchildren. Trustee is Settlor's friend. For six years, Trustee sent Lila checks but provided no accountings to Lila or the grandchildren. Trustee refused written requests for information, saying that "remainder beneficiaries have no right to know anything until Lila dies."
One grandchild later learned that Trustee had paid himself extra "administration bonuses" and had sold trust securities to pay personal credit-card debt, later replacing some but not all of the money. Trustee argues that the beneficiaries waited too long to complain because the first bonus was taken five years ago. No beneficiary had received a report disclosing the bonuses or the personal use of trust funds.
What duties did Trustee owe regarding information and accounting, and what remedies and limitations issues should the court consider?