The bill amends 14A V.S.A. § 505 regarding creditors' claims against settlors of trusts. It establishes that property held by spouses as tenants by the entirety, when conveyed to revocable or irrevocable trusts, will be immune from the claims of the spouses' separate creditors, provided certain conditions are met. These conditions include that both spouses are married, the property is held in the trust, and both spouses are current beneficiaries of the trust or trusts holding the property. Additionally, the bill clarifies that property in a tenants by the entirety trust retains immunity from creditors unless the marriage is dissolved by a court.

Furthermore, the bill specifies that the new provisions apply to all trusts created before, on, or after the effective date of the subsection, as well as to any property conveyed under these terms. It also states that the provisions will apply to all judicial proceedings concerning trusts initiated after the effective date. The act is set to take effect upon passage, which was signed by the Governor on April 24.

Statutes affected:
As Introduced: 14A-505
As Passed By the Senate -- Official: 14A-505
As Passed By the Senate -- Unofficial: 14A-505
As Passed by Both House and Senate -- Official: 14A-505
As Passed by Both House and Senate -- Unofficial: 14A-505
As Enacted: 14A-505