The bill H.23, introduced by Representative LaLonde, aims to protect property owned by spouses as tenants by the entirety when it is transferred into a trust. Specifically, it stipulates that such property, along with any proceeds from its sale or disposition, will remain immune from the claims of the spouses' separate creditors, maintaining the same level of protection as if the property had not been transferred. This immunity applies under certain conditions, including that the spouses are married, the property is held in the trust, and the trust can be revoked by either spouse acting alone.

Additionally, the bill outlines that property held in a tenants by the entirety trust will retain immunity from creditors' claims, similar to how it would be treated if held outside the trust. However, this immunity will cease if the marriage is dissolved by a court. The provisions of this bill apply to all trusts created before, on, or after its effective date, and it will take effect upon passage.

Statutes affected:
As Introduced: 14A-505