§ 30-4-8-7 — Prohibited causes of action; effect of spendthrift provision

(a) Except as provided in section 8 of this
chapter, no cause of action of any kind, including a cause of action to
enforce a judgment, may be brought for:
(1) an attachment or other provisional remedy against property
that is the subject of a qualified disposition to a legacy trust; or
(2) the avoidance of a qualified disposition to a legacy trust.
The protections provided to a qualified disposition by this subsection
apply notwithstanding any law to the contrary set forth outside this
chapter.
(b) If a court declines to apply Indiana law in determining the effect
of a spendthrift provision in a legacy trust in an action brought against
a legacy trust, the trustee of the legacy trust shall immediately resign
and, without further order of any court, cease to be the trustee of the
legacy trust. When a trustee resigns under this section, the trustee has
the power only to convey the trust property to a successor trustee
appointed under this section. A successor trustee shall succeed the
resigning trustee in accordance with the terms of the legacy trust. If the
trust does not provide for a successor trustee and the trust would
otherwise be without a trustee, any beneficiary of the trust may petition
an Indiana court to appoint a successor trustee. The Indiana court
receiving the petition shall appoint a successor trustee to serve in
accordance with the terms and conditions that the court determines are
consistent with the purposes of the trust and this chapter.
(c) A legacy trust and its property are protected under this section
regardless of whether or not the transferor:
(1) serves as an investment adviser under section 12 of this
chapter; or
(2) retains a power described in section 13 of this chapter.
(d) To the maximum extent permitted by the United States
Constitution and the Indiana Constitution, a court of this state shall
exercise jurisdiction over a legacy trust or a qualified disposition and
shall adjudicate a case or controversy brought before the court
regarding, arising out of, or related to a legacy trust or a qualified
disposition if that case or controversy is otherwise within the subject
matter jurisdiction of the court. Subject to the United States
Constitution and the Indiana Constitution, a court of this state shall not
dismiss or otherwise decline to adjudicate a case or controversy
described in this subsection on the grounds that a court of another
jurisdiction has acquired or may acquire proper jurisdiction over, or
may provide proper venue for, the case or controversy or the parties to
the case or controversy. Nothing in this subsection shall be construed
to do either of the following:
(1) Prohibit a transfer or other reassignment of a case or
controversy from one court of this state to another court of this
state.
(2) Expand or limit the subject matter jurisdiction of a court of
this state.

Legislative History

As added by P.L.221-2019, SEC.9. Amended by P.L.231-2019, SEC.29.