§554G-8 Avoidance of permitted transfers in trust.

415 words·~2 min read·/hi/554g-8

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

(a)No claim, including an action to enforce a judgment entered by a court or other body having adjudicative authority, by a creditor against property that is subject to a permitted transfer that arises after a permitted transfer and no claim by a creditor to avoid a permitted transfer shall be brought at law or in equity for attachment or other provisional remedy unless the permitted transfer was made with actual intent to defraud, hinder, or delay the creditor.

(b)An allowable claim under subsection

(a)shall be extinguished unless:

(1)The creditor's claim arose before the permitted transfer was made and the action is brought within the limitations of section 651C-9 on the latter of the date of the permitted transfer or July 1, 2010; or

(2)Notwithstanding the provisions of section 651C‑9, the creditor's claim arose concurrent with or subsequent to the permitted transfer, and the action is brought within two years after the permitted transfer is made.

(c)In any action described in subsection (a), the burden to prove intent to defraud, hinder, or delay by clear and convincing evidence shall be upon the creditor.

(d)For purposes of this section, a permitted transfer that is made by a transferor who is a trustee shall be deemed to have been made as of the date that the property that is the subject of the permitted transfer was originally transferred via a trust instrument that meets the requirements of this chapter to the transferor or the transferor's predecessor in interest.

(e)Notwithstanding any law to the contrary, a creditor or other person who purports to have a claim against property that is the subject of a permitted transfer shall have only the rights, with respect to a permitted transfer, as are provided in this section and sections 554G-9 and 554G-10.

(f)No creditor or any other person shall have any claim or cause of action, including an action to enforce a judgment entered by a court or other body having adjudicative authority, against a trustee or advisor described in section 554G-4.5(a) or against any person involved in drafting, preparing, executing, or funding a trust or in counseling the parties to a trust that is the subject of a permitted transfer if, as of the date the action is brought, an action with respect to the permitted transfer would be barred under this section. [L 2010, c 182, pt of §2; am L 2011, c 161, §8]