75B-1-301. Definitions for part.

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

Effective 5/7/2025

As used in this part:

(1)"Asset protection trust" means a trust:

(a)that is irrevocable;

(b)of which the settlor:

(i)is a beneficiary; or

(ii)may be made a beneficiary by the act or action of a person other than the settlor; and

(c)meets the requirements of this part.

(2)"Creditor" means:

(a)a creditor or other claimant of the settlor existing when the asset protection trust is created; or

(b)a person who subsequently becomes a creditor of the settlor, including whether or not reduced to judgment, liquidated, unliquidated, fixed, contingent, matured, unmatured, disputed, undisputed, legal, equitable, secured, or unsecured:

(i)holding or seeking to enforce a judgment entered by a court or other body having adjudicative authority; or

(ii)with a right to payment.

(3)"Domestic support obligation" means:

(a)a child support judgment or order;

(b)a spousal support judgment or order; or

(c)an unsatisfied claim arising from a property division in a divorce proceeding.

(4)"Insolvent" means:

(a)having generally ceased to pay debts in the ordinary course of business other than as a result of a bona fide dispute;

(b)being unable to pay debts as they become due; or

(c)being insolvent within the meaning of federal bankruptcy law.

(5)"Paid and delivered" does not include the settlor's use or occupancy, as a beneficiary, of real property or personal property owned by the asset protection trust if the use or occupancy is in accordance with the trustee's discretionary authority under the trust instrument.

(6)"Personal property" includes intangible and tangible personal property.

(7)"Transfer" means any form of transfer of property, including gratuitous transfers, whether by deed, conveyance, or assignment.

Amended by Chapter 310 , 2025 General Session

Amended by Chapter 338 , 2025 General Session