§554G-2 Definitions. As used in this chapter:

"Claim" means a right to payment, whether or not the right is reduced to judgment, liquidated, unliquidated, fixed, contingent, matured, unmatured, disputed, undisputed, legal, equitable, secured, or unsecured.

"Creditor" means, with respect to a transferor, a person who has a claim.

"Debt" means liability on a claim.

"Former spouse" means a person to whom the transferor was married where the marriage was dissolved before the time of the permitted transfer, or person with whom the transferor was in a civil union where the civil union was dissolved before the time of the permitted transfer.

"Permitted property" includes real property, personal property, and interests in real or personal property.

"Permitted transfer" means a transfer of permitted property by or from one or more transferors who own an undivided interest in the property to one or more trustees, at least one of which is a permitted trustee, by means of a trust instrument, regardless of whether consideration is exchanged. In the case of a transfer to more than one trustee, a disposition that is otherwise a permitted transfer shall not be treated as other than a permitted transfer solely because not all of the trustees are qualified trustees.

"Permitted trustee" means a person, other than the transferor, who is a resident of this State or a bank or trust company that is authorized to do business in this State, possesses and exercises trust powers, has its principal place of business in this State; and:

(1) Maintains or arranges for custody of some or all of the property that is the subject of the permitted transfer;

(2) Maintains records for the trust on an exclusive or nonexclusive basis;

(3) Prepares or arranges for the preparation of fiduciary income tax returns; or

(4) Otherwise materially participates in the administration of the trust.

"Person" means a natural person.

"Spouse" means a person to whom the transferor is married or with whom the person is party to a civil union at the time of the permitted transfer.

"Transfer" means the disposition, conveyance, or assignment of property, including the change in the legal ownership of property occurring upon the substitution of one trustee for another or the addition of one or more new trustees, or the exercise of a power that causes the disposition, conveyance, or assignment of permitted property to a trustee or trustees, but shall not include the release or relinquishment of an interest in property that was formerly the subject of a permitted transfer.

"Transferor" means:

(1) An owner of permitted property;

(2) The holder of a power of appointment that authorizes the holder to appoint in favor of the holder, the holder's creditors, the holder's estate, or the creditors of the holder's estate; or

(3) A trustee who directly or indirectly makes a disposition of permitted property.

"Trustee" includes an original, additional, or successor trustee, whether or not appointed or confirmed by court.

"Trust instrument" means an irrevocable instrument appointing a permitted trustee or permitted trustees for the permitted property that is the subject of a disposition. [L 2010, c 182, pt of §2; am L 2011, c 161, §3]

Revision Note

Definitions rearranged pursuant to §23G-15.