Montana Code 72-38-604. Limitation on action contesting validity of revocable trust — distribution of trust property
72-38-604. Limitation on action contesting validity of revocable trust — distribution of trust property. (1) A person may commence a judicial proceeding to contest the validity of a trust that was revocable at the settlor‘s death within the earlier of:
Terms Used In Montana Code 72-38-604
- Person: means an individual, corporation, business trust, estate, trust, partnership, limited liability company, association, joint venture, government, governmental subdivision, agency, or instrumentality, public corporation, or any other legal or commercial entity. See Montana Code 72-38-103
- Property: means anything that may be the subject of ownership, whether real or personal, legal or equitable, or any interest therein. See Montana Code 72-38-103
- Revocable trust: A trust agreement that can be canceled, rescinded, revoked, or repealed by the grantor (person who establishes the trust).
- Settlor: means a person, including a testator, who creates or contributes property to a trust. See Montana Code 72-38-103
- Trust instrument: means an instrument executed by the settlor that contains terms of the trust, including any amendments thereto. See Montana Code 72-38-103
- Trustee: A person or institution holding and administering property in trust.
- Trustee: includes an original, additional, and successor trustee and a cotrustee. See Montana Code 72-38-103
(a)3 years after the settlor’s death; or
(b)120 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.
(2)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 is not subject to liability for doing so unless:
(a)the trustee knows of a pending judicial proceeding contesting the validity of the trust; or
(b)a potential contestant has notified the trustee of a possible judicial proceeding to contest the trust and a judicial proceeding is commenced within 60 days after the contestant sent the notification.
(3)A beneficiary of a trust that is determined to have been invalid is liable to return any distribution received.