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

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

Sec. 14. (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.

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

IC 30-4-7Chapter 7. Adjudicated Compromise of Controversies

30-4-7-1Application of chapter 30-4-7-2Binding effect of compromise 30-4-7-3Rights of creditors or taxing authorities 30-4-7-4Appointment of guardian or guardian ad litem 30-4-7-5Law governing appointment of guardian or guardian ad litem 30-4-7-6Agreement of compromise 30-4-7-7Docket of documents 30-4-7-8Notice and hearing on agreement 30-4-7-9Court order 30-4-7-10Effect of entry of order