Qualified Dispositions in Trust Act

This act governs qualified dispositions — transfers of property into trust that restrict the extent to which creditors may reach the transferred assets. It defines the terms and relationships involved, sets jurisdiction and venue for related proceedings, identifies the powers and interests a transferor may retain over the trust without losing that protection, and conditions the transfer on a qualified affidavit from the transferor. It also establishes the limited right of action by which a creditor may challenge a qualified disposition, the treatment of trustees and beneficiaries when a disposition is avoided, the consequences of a qualified trustee ceasing to serve and the appointment of a successor, and the rights of creditors of a trust beneficiary, with general principles of law and equity supplementing these provisions.

Editorial summary generated from the text of this act. It is not part of the statute — read the sections below for the operative language.