§554G-9 Limitations on permitted transfers.

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

§554G-9 Limitations on permitted transfers. The limitations contained in section 554G-8 on actions by creditors to avoid permitted transfers shall not apply to:

(1)Any person to whom the transferor is indebted on account of a family court-supervised agreement or family court order for the payment of support or alimony to the transferor's spouse, former spouse, or children, or for a division or distribution of property to the transferor's spouse or former spouse; provided that the transferor is in default by thirty days or more of making a payment due under the agreement or order, but only to the extent of the debt and not to any claim for forced heirship, legitime, or elective share;

(2)Any person who suffers death, personal injury, or property damage on or before the date of a permitted transfer; provided that the death, personal injury, or property damage is determined to have been caused in whole or in part by the tortious act or omission of either the transferor or another person for whom the transferor is or was vicariously liable to the extent of the transferor's liability or vicarious liability;

(3)Any lender who extends a secured or collateralized loan to the transferor based on the transferor's or the transferor's agent's express or implied representation that the assets of a trust established under this chapter would be available as security against the loan in the event of the transferor's default thereon;

(4)The State of Hawaii to the extent that a transfer results in the transferor being unable to meet the transferor's tax liabilities, but only to the extent necessary to extinguish the outstanding tax liabilities; or

(5)A divorce or dissolution of marriage or civil union, for purposes of considering property subject to division under section 580-47, a transferor-beneficiary's interest with respect to assets transferred to the trust instrument:

(A)After the transferor's marriage or entry into a civil union; or

(B)Within thirty days prior to the transferor's marriage or civil union unless the transferor gives written notice to the other party to the marriage or civil union of the transfer; provided that in the event of the divorce or dissolution of the marriage or civil union of a non-transferor beneficiary of the trust, the non-transferor beneficiary's interest in the trust is not considered property subject to division under section 580-47. [L 2010, c 182, pt of §2; am L 2011, c 161, §9]