§ 75B-1-306 — Affidavit of solvency.

With respect to a transfer of assets to an asset protection trust, a settlor may sign a sworn affidavit stating that at the time of the transfer of the assets to the trust:
(1) the settlor has full right, title, and authority to transfer the assets to the trust;
(2) the transfer of the assets to the trust will not render the settlor insolvent;
(3) the settlor does not intend to hinder, delay, or defraud a known creditor by transferring the assets to the trust;
(4) there is no pending or threatened court action against the settlor, except for a court action identified by the settlor on an attachment to the affidavit;
(5) the settlor is not involved in an administrative proceeding that is reasonably expected to have a material adverse effect on the financial condition of the settlor, except an administrative proceeding identified on an attachment to the affidavit;
(6) at the time of the transfer of the assets to the trust, the settlor is not in default of a domestic support obligation;
(7) the settlor does not contemplate filing for relief under the provisions of United States Code, Title 11, Bankruptcy; and
(8) the assets being transferred to the trust were not derived from unlawful activities.

Legislative History

Enacted by Chapter 338, 2025 General Session