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Bill

HB 2722

Providing that certain resultant trusts are not subject to claims of the settlor's creditors.

2025-2026 Regular Session

Kansas bill exempts certain resultant trusts from creditor claims, potentially shielding settlor assets from debt collection.

Died in Committee
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Bill Summary · HB 2722

Legislative bill overview

HB 2722 would establish that certain "resultant trusts" in Kansas are protected from claims by the settlor's (trust creator's) creditors. A resultant trust is a trust created by operation of law when someone transfers property but the beneficial interest is not fully disposed of, causing it to revert to the original owner or their estate. This bill specifically exempts these trusts from creditor attachment in certain circumstances.

Why is this important

This legislation directly affects asset protection and creditor rights in Kansas. It could allow individuals to shield assets from creditors through the technical creation of resultant trusts, raising questions about debt accountability while potentially benefiting those with legitimate estate planning needs. The practical impact depends heavily on how broadly "certain resultant trusts" is defined in the bill's language.

Potential points of contention

  • Creditor protection scope: Unclear which resultant trusts qualify, creating potential for abuse by debtors attempting to shield assets from legitimate creditors while appearing to use legitimate estate planning tools
  • Timing and intent: Questions about whether trusts created before or after creditor claims arise are covered, which could encourage fraudulent conveyances
  • Balance of interests: Tension between protecting estate planning tools and ensuring creditors can recover legitimate debts, particularly for creditors with judgments or claims related to business obligations

Compiled from official sources — confirm details with the bill’s official record.

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