55-546.04 - Limitation on action contesting validity of revocable trust; distribution of trust property. - Virginia Statutes

§ 55-546.04. Limitation on action contesting validity of revocable trust;distribution of trust property.

A. A person may commence a judicial proceeding to contest the validity of atrust that was revocable at the settlor's death within the earlier of:

1. Two years after the settlor's death; or

2. Six months after the trustee sent the person a copy of the trustinstrument and a notice informing the person of the trust's existence, of thetrustee's name and address, and of the time allowed for commencing aproceeding.

B. Upon the death of the settlor of a trust that was revocable at thesettlor's death, the trustee may proceed to distribute the trust property inaccordance with the terms of the trust. The trustee is not subject toliability for doing so unless:

1. The trustee knows of a pending judicial proceeding contesting the validityof the trust; or

2. A potential contestant has notified the trustee of a possible judicialproceeding to contest the trust and a judicial proceeding is commenced within60 days after the contestant sent the notification.

C. A beneficiary of a trust that is determined to have been invalid is liableto return any distribution received.

(2005, c. 935; 2007, c. 218.)