2015 South Dakota Codified Laws
Title 55 - FIDUCIARIES AND TRUSTS
Chapter 16 - Qualified Dispositions In Trust
§ 55-16-10 Creditors' claims--Extinguishment--Exceptions--Burden of proof.

55-16-10. Creditors' claims--Extinguishment--Exceptions--Burden of proof.

A cause of action or claim for relief with respect to a fraudulent transfer of a settlor's assets under § 55-16-9 is extinguished unless the action under § 55-16-9 is brought by a creditor of the settlor who meets one of the following requirements:

(1) Is a creditor of the settlor before the settlor's assets are transferred to the trust, and the action under § 55-16-9 is brought within the later of:

(a) Two years after the transfer is made; or

(b) Six months after the transfer is or reasonably could have been discovered by the creditor if the creditor:

(i) Can demonstrate that the creditor asserted a specific claim against the settlor before the transfer; or

(ii) Files another action, other than an action under § 55-16-9, against the settlor that asserts a claim based on an act or omission of the settlor that occurred before the transfer, and the action described in this sub-subsection is filed within two years after the transfer; or

(2) Becomes a creditor subsequent to the transfer into trust, and the action under § 55-16-9 is brought within two years after the transfer is made.

In any action described in § 55-16-9, the burden to prove the matter by clear and convincing evidence is upon the creditor.

Source: SL 2005, ch 261, § 10; SL 2008, ch 257, § 17; SL 2012, ch 233, § 16.