14-3710. Power to avoid transfers; action to set aside fraudulent conveyances

241 words·~1 min read·/az/title-14/14-3710

A research copy — for the controlling text, always check the official state or federal source. Not legal advice.

A. The property liable for the payment of unsecured debts of a decedent includes all property transferred by him by any means which is in law void or voidable as against his creditors and subject to prior liens. The right to recover this property, so far as necessary for the payment of unsecured debts of the decedent, is exclusively in the personal representative.

B. When there is a deficiency of assets in custody of a personal representative, and decedent in his lifetime has conveyed or transferred property, or any rights or interests therein, with intent to defraud creditors, or to avoid a right, debt or duty of any person, or has conveyed or transferred the property so that the conveyance or transfer by law is void or voidable as against creditors, the personal representative shall commence and prosecute an action for the recovery of the property for the benefit of the creditors, and shall recover property which has been so conveyed or transferred, whatever may have been the manner of the conveyance or transfer.

C. The personal representative is not bound to bring the action unless the creditors pay such part of the costs and expenses of the action, or give such surety to the personal representative therefor as the court on application by the creditors may direct.

D. The property recovered shall be subject to payment of the debts of decedent as other property in custody of the personal representative.