Two Deadlines, and the Earlier One Wins
Contesting a trust is not open-ended. Two time limits apply, and the clock that runs out first controls.
A challenger must act within one year of the settlor's death. The deadline may be shorter: four months after the trustee sends a copy of the trust and a notice. Claims of undue influence, lack of capacity, or improper execution must meet these deadlines.
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: 1. One year after the settlor's death. 2. Four months 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.
A.R.S. § 14-10604(A)The four-month notice rule gives trustees a useful tool. By sending the trust document and a formal notice early, the trustee can shorten the contest window. Many estate planning professionals suggest doing this right after the settlor's death.
The Trustee Can Still Distribute Property
A trust offers an advantage over a will in this area. The trustee does not need court permission to distribute assets. This statute confirms the trustee may proceed after the settlor's death.
There are two exceptions. If the trustee knows about a pending contest, distributions during that period can create liability. The same is true if a potential challenger sends written notice and files suit within 60 days.
Any beneficiary who received assets from a trust later found invalid must return them. The only exception is a good-faith purchaser who had no knowledge of the issue.