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    What are the Exceptions to Asset Protection?
Assets in a TAPT are not protected from:

1. A creditor's claim arising before the creation and funding of the TAPT, as long as the creditor claims and proves that the TAPT was a fraudulent conveyance for the sole purpose of defrauding the creditor and not paying the creditor's claim;

2. A creditor's claim arising AFTER the creation and funding of the TAPT, and the creditor files suit before the expiration of four (4) years after the creation and funding of the TAPT;

3. A creditor's claim in federal bankruptcy made within ten (10) years of the creation and funding of the TAPT;

4. A creditor's claim for garnishment against any funds actually distributed to the TAPT beneficiary;

5. A creditor's claim filed in a state other than Tennessee, if that state chooses not to apply Tennessee law and the Full Faith and Credit Clause of the U.S. Constitution is not applicable to the TAPT law; and

6. A creditor's claim against a trust which does not comply with the statutory framework and requirements for a valid TAPT.

 
 
     
   
 
 
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