K.S.A. » Chapter 58a

K.S.A. § 58a-505

Creditor's claim against settlor

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58a-505. Creditor's claim against settlor. (a) Except as provided by K.S.A. 33-101 et seq. and 33-201 et seq., and amendments thereto, whether or not the terms of a trust contain a spendthrift provision, the following rules apply:

(1) During the lifetime of the settlor, the property of a revocable trust is subject to claims of the settlor's creditors.

(2) With respect to an irrevocable trust, a creditor or assignee of the settlor may reach the maximum amount that can be distributed to or for the settlor's benefit. If a trust has more than one settlor, the amount the creditor or assignee of a particular settlor may reach may not exceed the settlor's interest in the portion of the trust attributable to that settlor's contribution.

(3) After the death of a settlor, and subject to the settlor's right to direct the source from which liabilities will be paid, the property of a trust that was revocable at the settlor's death is subject to claims of the settlor's creditors, costs of administration of the settlor's estate, the expenses of the settlor's funeral and disposal of remains, the homestead, homestead allowance, the elective share rights of the surviving spouse pursuant to K.S.A. 59-6a209, and amendments thereto, and statutory allowance to a surviving spouse and children to the extent the settlor's probate estate is inadequate to satisfy those claims, costs, expenses, and allowances.

(b) For purposes of this section:

(1) During the period the power may be exercised, the holder of a power of withdrawal is treated in the same manner as the settlor of a revocable trust to the extent of the property subject to the power;

(2) upon the lapse, release, or waiver of the power, the holder is treated as the settlor of the trust only to the extent the value of the property affected by the lapse, release, or waiver exceeds the greater of the amount specified in section 2041(b)(2) or 2514(e) of the federal internal revenue code of 1986, as in effect on December 31, 2002; or section 2503(b) of the federal internal revenue code of 1986, as in effect on December 31, 2002; and

(3) this subsection shall not apply to the lapse of powers held by the spouse of a person occurring upon the death of such person.

History: L. 2002, ch. 133, § 42; L. 2004, ch. 158, § 8; July 1.

Notes of Decisions
Cited in 10 cases (2 in the last 5 years), 2005–2025 · leading case: Commerce Bank, N.A. v. Bolander
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Commerce Bank, N.A. v. Bolander (2007) kanctapp · cites it 15× “The court held that pursuant to K.S.A. 58a-505, the assets of the Trust were available to satisfy Commerce’s judgment claim.”
Redmond v. Kester (2007) kan · cites it 3× “” K.S.A. 58a-505 prevents the fraudulent conveyance of property to self-settled trusts to avoid creditors.”
Nelson v. Nelson (2009) kan “However, these arguments do not account for K.S.A. 58a-505(a)(3), which provides that “the property of a trust that was revocable at the settlor’s death is subject to claims of the settlor’s creditors.”
Estate of Draper v. Bank of America, N.A. (2009) kan “2d 604 (1947); see also K.S.A. 58a-505(a)(3) (“the property of a trust that was revocable at the settlor’s death is subject to claims of the settlor’s creditors”).”
Alain Ellis Living Trust v. Harvey D. Ellis Living Trust (2018) kan · cites it 2× “3d 83 (2007) (holding that even after a settlor's death the "clear unambiguous intent of the legislature [expressed] in K.S.A. 58a-505 [a][3] [is to] mak[e] the assets of a revocable trust 'subject to the claims of the settlor's creditors.”
Redmond v. Kester (In Re Kester) (2006) bap10 “Kan. Stat. Ann. § 58a-505(a)(l) (2005). 33 .”
Redmond v. Kester (In Re Kester) (2005) ksb · cites it 2× “See K.S.A. § 58a-505(a)(l). 14 . Tarrant v. Swain, 15 Kan.”
Chaney v. Armitage (2017) kanctapp · cites it 12× “Although K.S.A. 58a-505(a)(1) provides that during the lifetime of the settlor, the property of a revocable trust is subject to the claims of the settlor's creditor, the statute contains no language excluding the property held by the trust from the application of the exemptions…”
In Re Jennifer L Fowler Estate (2024) michctapp · cites it 2× “K.S.A. 58a-505. The Trust argues that protecting Commerce in this situation stands the law upside down by making assets which are exempt during Wanda’s lifetime available for creditors who have not exercised or attempted to exercise any rights during Wanda’s lifetime, but allows…”
Linda Lee Stutsman (2025) ksb · cites it 2× “See Kan. Stat. Ann. § 58a-505(1) (“During the lifetime of the settlor, the property of a revocable trust is subject to claims of the settlor’s creditors.”
— K.S.A. § 58a-505(1) — 1 case
Linda Lee Stutsman (2025) ksb “See Kan. Stat. Ann. § 58a-505(1) (“During the lifetime of the settlor, the property of a revocable trust is subject to claims of the settlor’s creditors.”
— K.S.A. § 58a-505(a)(1) — 1 case
Chaney v. Armitage (2017) kanctapp “Although K.S.A. 58a-505(a)(1) provides that during the lifetime of the settlor, the property of a revocable trust is subject to the claims of the settlor's creditor, the statute contains no language excluding the property held by the trust from the application of the exemptions…”
— K.S.A. § 58a-505(a)(3) — 4 cases
Commerce Bank, N.A. v. Bolander (2007) kanctapp “The court held that pursuant to K.S.A. 58a-505, the assets of the Trust were available to satisfy Commerce’s judgment claim.”
Nelson v. Nelson (2009) kan “However, these arguments do not account for K.S.A. 58a-505(a)(3), which provides that “the property of a trust that was revocable at the settlor’s death is subject to claims of the settlor’s creditors.”
Estate of Draper v. Bank of America, N.A. (2009) kan “2d 604 (1947); see also K.S.A. 58a-505(a)(3) (“the property of a trust that was revocable at the settlor’s death is subject to claims of the settlor’s creditors”).”
Chaney v. Armitage (2017) kanctapp “Although K.S.A. 58a-505(a)(1) provides that during the lifetime of the settlor, the property of a revocable trust is subject to the claims of the settlor's creditor, the statute contains no language excluding the property held by the trust from the application of the exemptions…”
— K.S.A. § 58a-505(a)(l) — 4 cases
Redmond v. Kester (2007) kan “” K.S.A. 58a-505 prevents the fraudulent conveyance of property to self-settled trusts to avoid creditors.”
Redmond v. Kester (In Re Kester) (2006) bap10 “Kan. Stat. Ann. § 58a-505(a)(l) (2005). 33 .”
Redmond v. Kester (In Re Kester) (2005) ksb “See K.S.A. § 58a-505(a)(l). 14 . Tarrant v. Swain, 15 Kan.”
Commerce Bank, N.A. v. Bolander (2007) kanctapp “The court held that pursuant to K.S.A. 58a-505, the assets of the Trust were available to satisfy Commerce’s judgment claim.”
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