Delaware Code Title 12 Sec. 3573 – Limitations on qualified dispositions
With respect to the limitations imposed by § 3572 of this title, those limitations on actions by creditors to avoid a qualified disposition shall not apply:
(1) To any person to whom the transferor is indebted on account of an agreement or order of court for the payment of support or alimony in favor of such transferor’s spouse, former spouse or children, or for a division or distribution of property incident to a judicial proceeding with respect to a separation or divorce in favor of such transferor’s spouse or former spouse, but only to the extent of such debt; or
(2) To any person who suffers death, personal injury or property damage on or before the date of a qualified disposition by a transferor, which death, personal injury or property damage is at any time determined to have been caused in whole or in part by the tortious act or omission of either such transferor or by another person for whom such transferor is or was vicariously liable but only to the extent of such claim against such transferor or other person for whom such transferor is or was vicariously liable.
Terms Used In Delaware Code Title 12 Sec. 3573
- Claim: means a right to payment, whether or not the right is reduced to judgment, liquidated, unliquidated, fixed, contingent, matured, unmatured, disputed, undisputed, legal, equitable, secured or unsecured. See Delaware Code Title 12 Sec. 3570
- Court: means the Court of Chancery. See Delaware Code Title 12 Sec. 39A-101
- Debt: means liability on a claim. See Delaware Code Title 12 Sec. 3570
- Disposition: means a transfer, conveyance or assignment of property (including a change in the legal ownership of property occurring upon the substitution of 1 trustee for another or the addition of 1 or more new trustees), or the exercise of a power so as to cause a transfer of property, to a trustee or trustees, but shall not include the release or relinquishment of an interest in property that theretofore was the subject of a qualified disposition and shall not include a sale or exchange for full and adequate consideration. See Delaware Code Title 12 Sec. 3570
- former spouse: means only persons to whom the transferor was married at, or before, the time the qualified disposition is made. See Delaware Code Title 12 Sec. 3570
- Person: has the meaning ascribed to it in § 302(15) of Title 1. See Delaware Code Title 12 Sec. 3570
- Property: includes real property, personal property, and interests in real or personal property. See Delaware Code Title 12 Sec. 3570
- Qualified disposition: means a disposition by or from a transferor (or multiple transferors in the case of property in which each such transferor owns an undivided interest) to 1 or more trustees, at least 1 of which is a qualified trustee, with or without consideration, by means of a trust instrument. See Delaware Code Title 12 Sec. 3570
- Transferor: means a person who, as an owner of property, as a holder of a power of appointment which authorizes the holder to appoint in favor of the holder, the holder's creditors, the holder's estate or the creditors of the holder's estate, or as a trustee, directly or indirectly makes a disposition or causes a disposition to be made. See Delaware Code Title 12 Sec. 3570
Paragraph (1) of this section shall not apply to any claim for forced heirship, legitime or elective share.
71 Del. Laws, c. 159, § ?1; 71 Del. Laws, c. 254, § ?36; 71 Del. Laws, c. 343, § ?8; 72 Del. Laws, c. 341, § ?9; 74 Del. Laws, c. 100, § ?1; 75 Del. Laws, c. 97, § ?15; 78 Del. Laws, c. 117, § ?12; 79 Del. Laws, c. 198, § ?1;