North Carolina General Statutes Chapter 36C. North Carolina Uniform Trust Code § 36C-6-604. Limitation on action contesting validity of revocable trust;  distribution of trust property

(a) 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 the following:

(b) Upon the death of the settlor of a trust that was revocable at the settlor's death, the trustee may proceed to administer the trust and distribute the trust property in accordance with the terms of the trust and shall not be subject to liability for doing so, except that the trustee shall not distribute trust property to any beneficiary in contravention of the rights of any person who may be affected by the outcome of a pending or possible judicial proceeding if, at the time the distribution is made, any of the following apply:

(b1) Any distribution in contravention of the provisions of subsection (b) of this section shall constitute a breach of trust by the trustee.  Upon motion of a party and after notice to interested parties, a court, on good cause shown, may make an exception to the provisions of subsection (b) of this section and authorize the trustee to distribute trust assets to a beneficiary, subject to any conditions the court, in the court's discretion, may impose, including the posting of a bond by the beneficiary.

(c) A beneficiary of a trust that is determined to have been invalid, or whose interest in a trust has been determined to be invalid, is liable to return any distribution received.  If the beneficiary refuses to return the distribution after being ordered by the court, the beneficiary shall be liable for all costs incurred for recovery of the distribution, including attorneys' fees.