Indiana Code 30-4-8-8. Prohibited claims against property subject of a qualified disposition; exceptions; extinguishing a claim
(1) Except as provided in subsection (b), an action brought in Indiana under the Uniform Fraudulent Transfer Act (IC 32-18-2) in which the requirements for recovery under the act are met by clear and convincing evidence.
Terms Used In Indiana Code 30-4-8-8
- Child: includes an adopted child or a child that is in gestation before the death of a deceased parent and born within forty-three (43) weeks after the death of that parent. See Indiana Code 30-4-1-2
- Court: means a court having jurisdiction over trust matters. See Indiana Code 30-4-1-2
- Evidence: Information presented in testimony or in documents that is used to persuade the fact finder (judge or jury) to decide the case for one side or the other.
- Judgment: means all final orders, decrees, and determinations in an action and all orders upon which executions may issue. See Indiana Code 1-1-4-5
- Legacy: A gift of property made by will.
- Property: includes personal and real property. See Indiana Code 1-1-4-5
- Trustee: A person or institution holding and administering property in trust.
- Trustee: has the meaning set forth in IC 30-2-14-13. See Indiana Code 30-4-1-2
(3) A court judgment or order for the division of property in a dissolution of the transferor’s marriage or a legal separation between the transferor and the transferor’s spouse, if the transferor’s qualified distribution to the legacy trust was made:
(A) after the date of the transferor’s marriage that is subject to the dissolution or legal separation; or
(B) within thirty (30) days before the date of the transferor’s marriage that is subject to the dissolution or legal separation unless the transferor provided written notice of the qualified disposition to the other party to the marriage at least three (3) days before making the qualified disposition.
(b) A claim brought under an action described in subsection (a)(1) is extinguished unless:
(1) the creditor’s claim arose before the qualified disposition to a legacy trust was made and the action is brought not later than the later of:
(A) two (2) years after the transfer was made; or
(B) six (6) months after the transfer:
(i) was recorded or made a public record; or
(ii) if not recorded or made a public record, was discovered or could have reasonably been discovered by the creditor; or
(2) notwithstanding IC 32-18-2-19, the creditor’s claim arose concurrent with or after the qualified disposition and the action is brought not more than two (2) years after the date of the qualified disposition.
(c) A qualified disposition made by a transferor who is a trustee is considered for purposes of this chapter to have been made on the date that the property that is subject to the qualified disposition was originally transferred in trust to the trustee or any predecessor trustee and the condition set forth in section 4(3) of this chapter is satisfied.
(d) If more than one (1) qualified disposition is made by means of the same legacy trust:
(1) the making of a subsequent qualified disposition is disregarded when determining whether a creditor’s claim with respect to a prior qualified disposition is extinguished under subsection (b); and
(2) any distribution to a beneficiary is considered to have been made from the latest qualified disposition.
(e) If the state of Indiana is a creditor of a transferor, then notwithstanding subsection (a)(1) and subsection (b), the state of Indiana may bring an action against a qualified trustee to assert a claim against or to recover property that is the subject of a qualified disposition by proceeding under the Indiana Uniform Fraudulent Transfer Act, subject to the standard of evidence in IC 32-18-2-14 and IC 32-18-2-15, and the limitation periods in IC 32-18-2-19.
As added by P.L.221-2019, SEC.9. Amended by P.L.231-2019, SEC.30; P.L.56-2020, SEC.13.