[ §554D-604] Limitation on action contesting validity of revocable trust; distribution of trust property.

215 words·~1 min read·/hi/554d-604

A research copy — for the controlling text, always check the official state or federal source. Not legal advice.

(a)A person may commence a judicial proceeding after the settlor's death to contest the validity of a trust that was revocable at the settlor's death within the earlier of:

(1)Five years after the settlor's death; or

(2)Ninety days after the trustee sent the person a copy of the trust instrument and a notice informing the person of the trust's existence, of the trustee's name and address, and of the time allowed for commencing a proceeding.

(b)Upon the death of the settlor of a trust that was revocable at the settlor's death, the trustee may proceed to distribute the trust property in accordance with the terms of the trust. The trustee shall not be subject to liability for doing so unless:

(1)The trustee has actual knowledge of a pending judicial proceeding contesting the validity of the trust; or

(2)A potential contestant has notified the trustee of a possible judicial proceeding to contest the trust and a judicial proceeding is commenced within sixty days after the contestant sent the notification.

(c)A beneficiary of a trust that is determined to have been invalid is liable to return any distribution received. [L 2021, c 32, pt of §2]