                                 CODE OF VIRGINIA

SELF-SETTLED SPENDTHRIFT TRUSTS (§ 64.2-745.1)

A. A settlor may transfer assets to a qualified self-settled spendthrift trust
and retain in that trust a qualified interest, and, except as otherwise provided
in this article, &#xA7; 64.2-747 shall not apply to such qualified interest.

B. Section 64.2-747 shall continue to apply with respect to any interest held by
a settlor in a qualified self-settled spendthrift trust, other than a qualified
interest.

C. A settlor&#8217;s transfer to a qualified self-settled spendthrift trust
shall not, to the extent of the settlor&#8217;s qualified interest, be deemed to
have been made with intent to delay, hinder, or defraud creditors, for purposes
of &#xA7; 55.1-400, merely because it is made to a trust with respect to which
the settlor retains a qualified interest and merely because it is made without
consideration. A settlor&#8217;s transfer to a qualified self-settled
spendthrift trust may, however, be set aside under &#xA7; 55.1-400 or 55.1-401
on other bases, such as if the transfer renders the settlor insolvent.

D. A settlor&#8217;s creditor may bring an action under &#xA7; 55.1-402 to avoid
a transfer to a qualified self-settled spendthrift trust or otherwise to enforce
a claim that existed on the date of the settlor&#8217;s transfer to such trust
within five years after the date of the settlor&#8217;s transfer to such trust
to which such claim relates.

E. A creditor shall have only such rights with respect to a settlor&#8217;s
transfer to a qualified self-settled spendthrift trust as are provided in this
section. No creditor and no other person shall have any claim or cause of action
against any trustee, trust adviser, trust director, or any person involved in
the counseling, drafting, preparation, or execution of, or transfers to a
qualified self-settled spendthrift trust.

F. If a settlor makes more than one transfer to the same qualified self-settled
spendthrift trust, the following rules shall apply:

   1. The settlor&#8217;s making of a subsequent transfer shall be disregarded in
   determining whether a creditor&#8217;s claim with respect to a prior transfer
   is valid under this section;

   2. With respect to each subsequent transfer by the settlor, the five-year
   limitations period provided in subsection D, with respect to actions brought
   under Chapter 4 (&#xA7; 55.1-400 et seq.) of Title 55.1 with respect to the
   subsequent transfer, commences on the date of such subsequent transfer; and

   3. Any distribution to a beneficiary is deemed to have been made from the
   latest such transfer.

G. The movement to the Commonwealth of the administration of an existing trust,
which, after such movement to the Commonwealth, meets for the first time all of
the requirements of a qualified self-settled spendthrift trust, shall be
treated, for purposes of this section, as a transfer to this trust by the
settlor on the date of such movement of all of the assets previously transferred
to the trust by the settlor.

HISTORY: 2012, c. 555, § 55-545.03:2; 2012, c. 614.