55-16-10.   Creditors' claims--Extinguishment--Exceptions--Burden of proof. A cause of action or claim for relief with respect to a fraudulent transfer of a settlor's assets under § 55-16-9 is extinguished unless the action under § 55-16-9 is brought by a creditor of the settlor who meets one of the following requirements:

             (1)      Is a creditor of the settlor before the settlor's assets are transferred to the trust, and the action under § 55-16-9 is brought within the later of:

             (a)      Two years after the transfer is made; or

             (b)      Six months after the transfer is or reasonably could have been discovered by the creditor if the creditor:

             (i)      Can demonstrate that the creditor asserted a specific claim against the settlor before the transfer; or

             (ii)      Files another action, other than an action under § 55-16-9, against the settlor that asserts a claim based on an act or omission of the settlor that occurred before the transfer, and the action described in this sub-subsection is filed within two years after the transfer; or

             (2)      Becomes a creditor subsequent to the transfer into trust, and the action under § 55-16-9 is brought within two years after the transfer is made.

     In any action described in § 55-16-9, the burden to prove the matter by clear and convincing evidence is upon the creditor.

Source: SL 2005, ch 261, § 10; SL 2008, ch 257, § 17; SL 2012, ch 233, § 16.

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