New Hampshire § 564-B:5-505 Creditor's Claim Against a Settlor of a Revocable Trust

New Hampshire Statutes

§ 564-B:5-505 — Creditor's Claim Against a Settlor of a Revocable Trust

New Hampshire·Title LVI PROBATE COURTS AND DECEDENTS' ESTATES·Ch. 564-B NEW HAMPSHIRE TRUST CODE·Subdivision ARTICLE 5CREDITOR'S CLAIMS; SPENDTHRIFT AND DISCRETIONARY TRUSTS

(a)During the settlor's life, the property of a revocable trust is subject to claims of the settlor's creditors regardless of whether the trust contains a spendthrift provision.

(b)After the settlor's death and subject to the settlor's right to direct the source from which liabilities will be paid, the property of a trust that was revocable immediately before the settlor's death is subject to the following claims to the extent that the settlor's probate estate is inadequate to satisfy those claims:

(1)Claims of the settlor's creditors;

(2)Costs of administration of the settlor's estate; and

(3)Expenses of the settlor's funeral and disposal of remains.

(c)Subsection (b) shall apply to a trust regardless of whether the trust contains a spendthrift provision.

(d)Subsection (b) shall no

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(a) During the settlor's life, the property of a revocable trust is subject to claims of the settlor's creditors regardless of whether the trust contains a spendthrift provision.
(b) After the settlor's death and subject to the settlor's right to direct the source from which liabilities will be paid, the property of a trust that was revocable immediately before the settlor's death is subject to the following claims to the extent that the settlor's probate estate is inadequate to satisfy those claims:
(1) Claims of the settlor's creditors;
(2) Costs of administration of the settlor's estate; and
(3) Expenses of the settlor's funeral and disposal of remains.
(c) Subsection (b) shall apply to a trust regardless of whether the trust contains a spendthrift provision.
(d) Subsection (b) shall not apply to:
(1) The proceeds and any other benefits of a policy of life or endowment insurance effected by a settlor, a trustee, or any other person on the settlor's life or another individual's life as provided in RSA 408:6; or
(2) Any claim barred under RSA 564-B:5-508.
(e) During only the period that the power of withdrawal may be exercised, the holder of a power of withdrawal shall be treated in the same manner under this section as the settlor of a revocable trust to the extent of the property subject to the power of withdrawal.

New Hampshire § 564-B:5-505 (Creditor's Claim Against a Settlor of a Revocable Trust) — published by Counsel Stack Legal Research, free access to 12M+ legal documents.

Legislative History

2004, 130:1. 2005, 270:15, eff. Sept. 20, 2005. 2008, 374:10-12, eff. Sept. 9, 2008. 2014, 195:18-20, eff. July 1, 2014. 2017, 257:20, eff. Sept. 16, 2017. 2022, 144:2, eff. Jan. 1, 2023.