Vermont H0023 amends trust laws to maintain creditor immunity for property held by spouses in a trust.

Vermont H0023 modifies the state's trust laws to ensure that property owned by spouses as tenants by the entirety retains its immunity from creditor claims when transferred into a trust. This immunity applies unless the spouses' marriage is dissolved by a court. The bill also specifies that creditors of a settlor cannot reach trust property beyond the settlor's interest, except in the case of special needs trusts for disabled persons. The changes take effect upon passage of the act.

Vermont H0023 amends trust laws to maintain creditor immunity for property held by spouses in a trust.

Vermont H0023 modifies the state's trust laws to ensure that property owned by spouses as tenants by the entirety retains its immunity from creditor claims when transferred into a trust. This immunity applies unless the spouses' marriage is dissolved by a court. The bill also specifies that creditors of a settlor cannot reach trust property beyond the settlor's interest, except in the case of special needs trusts for disabled persons. The changes take effect upon passage of the act.