§ 75B-1-309 — Liability of participant in asset protection trust.

(1) If the settlor signs an affidavit described in Section 75B-1-306, a person, including a creditor, may not assert a cause of action or claim for relief against a trustee of the asset protection trust, or against a person that was involved in the counseling, drafting, preparation, execution, or funding of the asset protection trust, for:
(1)(a) conspiracy to engage in a voidable transfer;
(1)(b) aiding and abetting a voidable transfer;
(1)(c) participation in the trust transaction; or
(1)(d) a similar cause of action or claim for relief described in Subsections (1)(a) through (c).
(2) For purposes of Subsection (1), the counseling, drafting, preparation, execution, or funding of the trust includes the preparation and funding of a limited partnership, a limited liability company, or other entity if interests in the entity are subsequently transferred to the trust.
(3) The creditor or other person prevented from asserting a cause of action or claim for relief described in Subsection (1) may only assert a cause of action against, and is limited to recourse against:
(3)(a) the trust and the trust assets; and
(3)(b) the settlor to the extent otherwise allowed under this part.

Legislative History

Enacted by Chapter 338, 2025 General Session