The bill S.3 amends 14A V.S.A. 505 regarding the treatment of property held in trusts, specifically focusing on the immunity of such property from creditors' claims. It introduces new provisions that state property held by spouses as tenants by the entirety, when conveyed to their revocable or irrevocable trusts, will be immune from the claims of their separate creditors, provided certain conditions are met. These conditions include that the 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 judicial proceedings concerning trusts initiated after this date. The act is set to take effect upon passage.

Statutes affected:
As Introduced: 14A-505
As Passed By the Senate -- Official: 14A-505
As Passed By the Senate -- Unofficial: 14A-505