§ 75B-1-307 — Limitations on cause of action for asset protection trust.

(1) (1)(a) Except as provided in Subsection (1)(b), a cause of action or claim for relief under this part is not a cause of action or claim for relief under Title 25, Chapter 6, Uniform Voidable Transfers Act.
(1)(b) A cause of action or claim for relief under Subsections 75B-1-303(5)(a) and (6)(a) is a cause of action or claim for relief under Section 25-6-202 or 25-6-203.
(1)(c) A person, including a creditor, may only bring a cause of action under Subsection 75B-1-303(5)(a) or (6)(a) with regard to the portion of the assets transferred to the trustee of the asset protection trust within the time period described in Subsection (2).
(2) Notwithstanding Section 25-6-305, a cause of action or claim for relief regarding a fraudulent conveyance or other voidable transfer of a settlor's assets under this part is extinguished unless the action is brought by a creditor of the settlor who was a creditor of the settlor before the assets in question were transferred to the asset protection trust and the action is brought within the earlier of:
(2)(a) the later of two years after the transfer is made, or one year after the transfer is or reasonably could have been discovered by the creditor if the creditor:
(2)(a)(i) can demonstrate, by clear and convincing evidence, that the creditor asserted a specific claim against the settlor before the transfer; or
(2)(a)(ii) files another action, other than an action alleging a fraudulent conveyance or other voidable transfer against the settlor that asserts a claim based on an act or omission of the settlor that occurred before the transfer, and the action described in this Subsection (2) is filed within two years after the transfer; or
(2)(b) (2)(b)(i) with respect to a creditor known to the settlor, 120 days after the date on which notice of the transfer is mailed to the creditor; or
(2)(b)(ii) with respect to a creditor not known to the settlor, 120 days after the date on which notice of the transfer is first published in a newspaper of general circulation in the county in which the settlor then resides, or is published on a public legal notice website as defined in Section 45-1-101.
(3) A notice described in Subsection (2)(b)(i) shall:
(3)(a) state the name and address of the settlor or the settlor's representative;
(3)(b) state the name and address of the trustee or the trustee's representative;
(3)(c) describe the assets that were transferred, except that the notice does not need to state the value of the assets if the assets are other than cash; and
(3)(d) inform the creditor that the creditor is required to bring the creditor's cause of action or claim for relief against the settlor and the trustee within 120 days from the mailing of the notice or be forever barred.
(4) A notice described in Subsection (2)(b)(ii) shall:
(4)(a) state the name and address of the settlor or the settlor's representative;
(4)(b) state the name and address of the trustee or the trustee's representative;
(4)(c) describe the assets that were transferred, except that the notice does not need to state the value of the assets;
(4)(d) be published in accordance with the provisions of Section 45-1-101 for three consecutive weeks; and
(4)(e) inform creditors that they are required to bring a cause of action or claim for relief within 120 days from the first publication of the notice or be forever barred.
(5) Failure to give the notice required in Subsection (2)(b) to a creditor does not prevent the shortening of the limitations period under Subsection (2)(b) with respect to another creditor who properly received notice by mail or publication.

Legislative History

Enacted by Chapter 338, 2025 General Session