Delaware Code Title 12 Sec. 3546 – Limitation on action contesting validity of trusts
(a) A judicial proceeding to contest whether a revocable trust or any amendment thereto, or an irrevocable trust was validly created may not be initiated later than the first to occur of:
(1) One hundred twenty days after the date that the trustee notified in writing the person who is contesting the trust of the trust’s existence, of the trustee’s name and address, of whether such person is a beneficiary, and of the time allowed under this section for initiating a judicial proceeding to contest the trust provided, however, that no trustee shall have any liability under the governing instrument or to any third party or otherwise for failure to provide any such written notice. For purposes of this paragraph (a)(1), notice shall have been given when sent to the person to whom the notice was given. Absent evidence to the contrary, it shall be presumed that notice was received by the person 7 days after it was sent to such person in accordance with § 3534 of this title;
(2) Two years after the trustor‘s death;
(3) If the trust was revocable at the trustor’s death and the trust was specifically referred to in the trustor’s last will, the time in which a petition for review of a will could be filed under this title; or
(4) The date the person’s right to contest was precluded by adjudication, consent or other limitation.
Terms Used In Delaware Code Title 12 Sec. 3546
- Amendment: A proposal to alter the text of a pending bill or other measure by striking out some of it, by inserting new language, or both. Before an amendment becomes part of the measure, thelegislature must agree to it.
- Beneficiary: A person who is entitled to receive the benefits or proceeds of a will, trust, insurance policy, retirement plan, annuity, or other contract. Source: OCC
- Evidence: Information presented in testimony or in documents that is used to persuade the fact finder (judge or jury) to decide the case for one side or the other.
- Irrevocable trust: A trust arrangement that cannot be revoked, rescinded, or repealed by the grantor.
- Party: means the respondent, petitioner, guardian, conservator, or any other person allowed by the Court to participate in a guardianship or protective proceeding. See Delaware Code Title 12 Sec. 39A-101
- Revocable trust: A trust agreement that can be canceled, rescinded, revoked, or repealed by the grantor (person who establishes the trust).
- Trustee: A person or institution holding and administering property in trust.
- Trustor: The person who makes or creates a trust. Also known as the grantor or settlor.
(b) Upon the death of the trustor of a trust that was revocable at the time of the trustor’s death, the trustee may proceed to distribute the trust property in accordance with the terms of the trust. This distribution may be made without liability unless the trustee has actual knowledge of a pending judicial proceeding to contest the validity of the trust, or is notified by a potential contestant of a possible contest, followed by its initiation within 30 days of such notice.
(c) Until a contest is barred under subsection (a) of this section, a beneficiary of what later turns out to have been an invalid trust is liable to return any distribution received.
(d) For purposes of paragraph (a)(1) of this section, a person is deemed to have been given any notice that has been given to any other person who under § 3547 of this title may represent and bind such person.
72 Del. Laws, c. 388, § ?2; 74 Del. Laws, c. 81, § ?5; 75 Del. Laws, c. 97, § ?7; 78 Del. Laws, c. 117, § ?9; 79 Del. Laws, c. 197, § ?2; 80 Del. Laws, c. 153, § ?4; 81 Del. Laws, c. 149, § 2; 83 Del. Laws, c. 343, § 4;