§ 36C-6-604. Limitation on action contesting validity of revocable trust; distribution of trust property. - North Carolina Statutes

§ 36C‑6‑604. Limitation on action contesting validity of revocable trust; distribution oftrust property.

(a)        A person maycommence a judicial proceeding to contest the validity of a trust that wasrevocable at the settlor's death within the earlier of:

(1)        Three years afterthe settlor's death; or

(2)        120 days after thetrustee sent the person a copy of the trust instrument and a notice informingthe person of the trust's existence, of the trustee's name and address, and ofthe time allowed for commencing a proceeding.

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

(1)        The trustee knows ofa pending judicial proceeding contesting the validity of the trust; or

(2)        A potentialcontestant has notified the trustee of a possible judicial proceeding tocontest the trust, and a judicial proceeding is commenced within 60 days afterthe contestant sent the notification.

(c)        A beneficiary of atrust that is determined to have been invalid is liable to return anydistribution received. (2005‑192, s. 2.)