55-16-10 Creditors' claims--Extinguishment--Exceptions--Burden of proof.
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:
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:
Two years after the transfer is made; or
Six months after the transfer is or reasonably could have been discovered by the
creditor if the creditor:
Can demonstrate that the creditor asserted a specific claim against the settlor
before the transfer; or
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
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.