MN HF1384

Excludes contributions to qualified charitable or religious organizations from the fraudulent transfers act definition, unless the contribution was made within two years of a legal action and meets specific fraud indicators.

Charitable contributions are not considered fraudulent transfers if they did not exceed 15 percent of the debtor's gross annual income for that year, or if the contribution was consistent with the debtor's established charitable giving practices.

Contributions may still be considered fraudulent transfers if the debtor made them with actual intent to hinder, delay, or defraud creditors, or if the debtor was insolvent, engaged in business with inadequate remaining assets, or incurred debts beyond ability to pay.

Defines "qualified charitable or religious organization or entity" as organizations described in Internal Revenue Code section 170(c)(1), (2), or (3).

Clarifies that returns on investments made by charitable or religious organizations are still considered transfers and not excluded from the fraudulent transfers act.