The Uniform Voidable Transactions Act: Why Transfers to Self-Settled Spendthrift Trusts by Settlors in Non-APT States Are Not Voidable Transfers Per Se
July 13, 2017
By: Daniel S. Rubin
Tax Management Estates, Gifts and Trusts Journal
In 2014, the Uniform Law Commission (ULC), also known as the National Conference of Commissioners on Uniform State Laws, adopted amendments to the Uniform Fraudulent Transfer Act (UFTA) and ‘‘refreshed’’ the UFTA’s official comments (the Comments). Among other things, the amendments renamed the UFTA as the Uniform Voidable Transactions Act (UVTA) and added a new §101 that provides that the law of an individual’s residence is to be the governing law concerning whether such individual has made a voidable transfer. The true impact of §10 is most felt with respect to self-settled spendthrift trusts (SSSTs) (which are most often referred to as ‘‘asset-protection trusts’’ (APTs)) where the settlor of an irrevocable trust remains a permissible recipient of the income and principal from such trust.