Wyoming Uniform Fraudulent Transfers ACT

This statute has shortened the period during which a creditor may pursue a claim against a contributor from four to two years in some instances and from one year to six months in the remaining instances as follows:

• W.S. §34-14-205(a)(i) – lessened the recovery period from four to two years after contribution or if later, from one year to six months from the date the contribution was or could reasonably have been discovered;


• W.S. §§34-14-205(a)(ii) and 34-14-206(a) - lessened the recovery period from within four to two years after contribution; and


• W.S. §34-14-206(b) - lessened the recovery period from one year to six months after contribution.

W.S. §34-14-205 “Transfers fraudulent as to present and future creditors” applies to (i) creditor claims existing at contribution and (ii) those subsequently arising.

Subsection (a)(i) allows recovery of contributions made with the actual intent to hinder, delay, or defraud any of the contributor’s creditors.

Subsection (a)(ii) allows recovery of contributions if the contributor did not receive reasonably equivalent value in exchange for the transfer, and the contributor

• was either engaged or about to engage in a business or transaction for which the contributor’s remaining assets were unreasonably small; or


• intended to incur, or believed or reasonably should have believed the contributor would incur, debts beyond the contributor’s ability to pay.

W.S. §34-14-206 titled “Transfers fraudulent as to present creditors” applies solely to existing and not subsequently arising creditors.

Subsection (a) allows recovery if the contribution occurred without reasonably equivalent value in exchange and the contributor was insolvent or became insolvent from the contribution. Subsection (b) allows recovery if the contribution was made to an insider for an antecedent debt, the contributor was insolvent at that time, and the insider had reasonable cause to believe that the contributor was insolvent. An insider is generally a relative or business organization related to the contributor.

This addition pertains solely to contributions to (i) a “qualified spendthrift trust” formed under W.S. §§4-10-510 through 4-10-515 and (ii) an “irrevocable discretionary trust” under §W.S. 4-10-506(c). (These were collectively defined above as a “DAPT.”). This subsection distinguishes between creditors known and unknown to the contributor on the date of contribution.

Subsection (b)(i) provides with respect to a known creditor that all claims are extinguished unless an action is brought no later than 90 days after notice is mailed. The notice must provide

• The name and address of the contributor or the contributor’s representative and the name and address of the trustee or the trustee’s representative;


• That assets were transferred to a DAPT; and


• That the creditor is required to initiate an action against the contributor and trustee within ninety days from mailing or the claim is forever barred.

Subsection (b)(ii) provides with respect to an unknown creditor that all claims are extinguished unless an action is brought no later than 90 days after the notice is first published in a newspaper of general circulation in the county in which the contributor resides, as long as the notice provisions under (b)(i) are complied with.

Subsection (b)(iii) provides that, notwithstanding subsections (i) and (ii), a claim will not be extinguished if within the later of two years after the transfer is made or six months after the transfer is or reasonably could have been discovered by the creditor, the creditor can demonstrate by clear and convincing evidence that the creditor asserted a specific claim against the settlor before the transfer.