§ 30-4-6-14 — Contesting validity of revocable or irrevocable trust; time limits; notice requirements; petition

(a) A person must commence a judicial
proceeding to contest the validity of a trust that is irrevocable or
revocable at the settlor's death, or revocable at the time the notice under
this section is given, within the earlier of the following:
(1) Ninety (90) days after the person receives from the trustee, the
settlor, or the agent of the trustee or settlor, a copy of a trust
certification required by IC 30-4-4-5 and a notice that:
(A) informs the person of the trust's existence;
(B) states the trustee's name and address;
(C) states:
(i) the person's interest in the trust, as described in the trust
document; or
(ii) that the person has no interest in the trust; and
(D) states the time allowed for commencing the proceeding.
(2) Three (3) years after the settlor's death.
(b) If a notice under subsection (a) pertains to a trust created by a
settlor who is still living, the settlor, the trustee, or the agent of the
settlor or trustee must send a complete copy of the trust instrument for
that trust with the notice to each person to whom the notice under
subsection (a) is sent.
(c) More than one hundred twenty (120) days after the death of the
settlor of a trust that was revocable at the settlor's death, the trustee
may distribute the trust property in accordance with the terms of the
trust. The trustee is not subject to liability for the distribution unless:
(1) the trustee knows of a pending judicial proceeding contesting
the validity of the trust; or
(2) a potential contestant notifies the trustee of a possible judicial
proceeding to contest the trust and a judicial proceeding is
commenced not later than sixty (60) days after the contestant
sends the trustee the notification.
(d) A beneficiary of a trust that is determined to be invalid shall
return any distribution received.
(e) The complaint or petition for a proceeding filed under subsection
(a) must name all of the following, if they exist or are living, as party
defendants:
(1) The settlor.
(2) The settlor's spouse.
(3) Each qualified beneficiary identified by name or discernable
as part of a class identified in the trust instrument.
(4) The currently serving trustee or first priority successor trustee
identified in the trust instrument.
(5) Any other person who received a notice under subsection (a).
(f) Notice of the filing of a complaint or petition under subsection
(a) must be served upon each party defendant as required by the
Indiana Rules of Trial Procedure.
(g) The burden of proving an allegation set forth in a complaint or
petition that is filed under subsection (a) is on the person who
commenced the proceeding.
(h) The failure of a trustee to adhere to the requirements of this
section may not be offered or cited as evidence that a trust is not valid.
(i) If a notice sent under subsection (a) is concerning a revocable or
irrevocable trust and the trust is later:
(1) amended;
(2) restated; or
(3) lawfully modified;
a person who received the written notice is not precluded from
commencing a proceeding to contest the validity of the amended,
restated, or modified trust.

Legislative History

As added by P.L.238-2005, SEC.46. Amended by P.L.51-2014, SEC.26; P.L.38-2023, SEC.18.