diff --git a/go.mod b/go.mod
index 8303d50e8..883db642c 100644
--- a/go.mod
+++ b/go.mod
@@ -30,7 +30,7 @@ require (
 	github.com/lightninglabs/lightning-node-connect/hashmailrpc v1.0.2
 	github.com/lightninglabs/lndclient v1.0.1-0.20240607082608-4ce52a1a3f27
 	github.com/lightninglabs/neutrino/cache v1.1.2
-	github.com/lightningnetwork/lnd v0.18.0-beta.rc4.0.20240627024114-9eec9b504509
+	github.com/lightningnetwork/lnd v0.18.0-beta.rc4.0.20240702183719-8d838801616a
 	github.com/lightningnetwork/lnd/cert v1.2.2
 	github.com/lightningnetwork/lnd/clock v1.1.1
 	github.com/lightningnetwork/lnd/fn v1.1.0
diff --git a/go.sum b/go.sum
index cfaeae104..ccd3733cd 100644
--- a/go.sum
+++ b/go.sum
@@ -490,8 +490,8 @@ github.com/lightninglabs/protobuf-go-hex-display v1.30.0-hex-display h1:pRdza2wl
 github.com/lightninglabs/protobuf-go-hex-display v1.30.0-hex-display/go.mod h1:HV8QOd/L58Z+nl8r43ehVNZIU/HEI6OcFqwMG9pJV4I=
 github.com/lightningnetwork/lightning-onion v1.2.1-0.20230823005744-06182b1d7d2f h1:Pua7+5TcFEJXIIZ1I2YAUapmbcttmLj4TTi786bIi3s=
 github.com/lightningnetwork/lightning-onion v1.2.1-0.20230823005744-06182b1d7d2f/go.mod h1:c0kvRShutpj3l6B9WtTsNTBUtjSmjZXbJd9ZBRQOSKI=
-github.com/lightningnetwork/lnd v0.18.0-beta.rc4.0.20240627024114-9eec9b504509 h1:3Mf45BhHztEjofy0eYtaYM6hs+I/03/Z5AZ0W+zNdIU=
-github.com/lightningnetwork/lnd v0.18.0-beta.rc4.0.20240627024114-9eec9b504509/go.mod h1:L3IArArdRrWtuw+wNsUlibuGmf/08Odsm/zo3+bPXuM=
+github.com/lightningnetwork/lnd v0.18.0-beta.rc4.0.20240702183719-8d838801616a h1:nb03C8JKvMAeFqGRLncnLJx0Og8CWSdNd5Cw3P/vVRo=
+github.com/lightningnetwork/lnd v0.18.0-beta.rc4.0.20240702183719-8d838801616a/go.mod h1:L3IArArdRrWtuw+wNsUlibuGmf/08Odsm/zo3+bPXuM=
 github.com/lightningnetwork/lnd/cert v1.2.2 h1:71YK6hogeJtxSxw2teq3eGeuy4rHGKcFf0d0Uy4qBjI=
 github.com/lightningnetwork/lnd/cert v1.2.2/go.mod h1:jQmFn/Ez4zhDgq2hnYSw8r35bqGVxViXhX6Cd7HXM6U=
 github.com/lightningnetwork/lnd/clock v1.1.1 h1:OfR3/zcJd2RhH0RU+zX/77c0ZiOnIMsDIBjgjWdZgA0=
diff --git a/tapcfg/server.go b/tapcfg/server.go
index 0b617a050..cf1b21af3 100644
--- a/tapcfg/server.go
+++ b/tapcfg/server.go
@@ -447,6 +447,13 @@ func genServerConfig(cfg *Config, cfgLogger btclog.Logger,
 			AddrBook:           addrBook,
 			TxSender:           chainPorter,
 			DefaultCourierAddr: proofCourierAddr,
+			ProofArchive:       proofArchive,
+			ProofFetcher:       proofCourierDispatcher,
+			HeaderVerifier:     headerVerifier,
+			GroupVerifier: tapgarden.GenGroupVerifier(
+				context.Background(), assetMintingStore,
+			),
+			ChainBridge: chainBridge,
 		},
 	)
 	auxSweeper := tapchannel.NewAuxSweeper(
diff --git a/tapchannel/aux_closer.go b/tapchannel/aux_closer.go
index 6caea2915..55312ded2 100644
--- a/tapchannel/aux_closer.go
+++ b/tapchannel/aux_closer.go
@@ -17,6 +17,7 @@ import (
 	"github.com/lightninglabs/taproot-assets/proof"
 	"github.com/lightninglabs/taproot-assets/tapchannelmsg"
 	"github.com/lightninglabs/taproot-assets/tapfreighter"
+	"github.com/lightninglabs/taproot-assets/tapgarden"
 	"github.com/lightninglabs/taproot-assets/tappsbt"
 	"github.com/lightninglabs/taproot-assets/tapsend"
 	lfn "github.com/lightningnetwork/lnd/fn"
@@ -45,6 +46,22 @@ type AuxChanCloserCfg struct {
 	// DefaultCourierAddr is the default address we'll use to send/receive
 	// proofs for the co-op close process
 	DefaultCourierAddr *url.URL
+
+	// ProofFetcher is used to fetch proofs needed to properly import the
+	// funding output into the database as our own.
+	ProofFetcher proof.CourierDispatch
+
+	// ProofArchive is used to store import funding output proofs.
+	ProofArchive proof.Archiver
+
+	// HeaderVerifier is used to verify headers in a proof.
+	HeaderVerifier proof.HeaderVerifier
+
+	// GroupVerifier is used to verify group keys in a proof.
+	GroupVerifier proof.GroupVerifier
+
+	// ChainBridge is used to fetch blocks from the main chain.
+	ChainBridge tapgarden.ChainBridge
 }
 
 // assetCloseInfo houses the information we need to finalize the close of an
@@ -624,6 +641,37 @@ func (a *AuxChanCloser) FinalizeClose(desc chancloser.AuxCloseDesc,
 			desc.ChanPoint)
 	}
 
+	// Before we finalize the close process, we'll make sure to also import
+	// a transfer for the funding outputs. This way we'll ensure that we're
+	// able to insert the transfer that spends these outputs. We only need
+	// to do this for the responder though, as the creator of the channel
+	// already has these proofs inserted.
+	if !desc.Initiator {
+		fundingInfo, err := tapchannelmsg.DecodeOpenChannel(
+			desc.FundingBlob.UnwrapOr(nil),
+		)
+		if err != nil {
+			return err
+		}
+
+		fundingInputProofs := fn.Map(
+			fundingInfo.FundedAssets.Val.Outputs,
+			func(a *tapchannelmsg.AssetOutput) *proof.Proof {
+				return &a.Proof.Val
+			},
+		)
+		err = importOutputProofs(
+			desc.ShortChanID, fundingInputProofs,
+			a.cfg.DefaultCourierAddr, a.cfg.ProofFetcher,
+			a.cfg.ChainBridge, a.cfg.HeaderVerifier,
+			a.cfg.GroupVerifier, a.cfg.ProofArchive,
+		)
+		if err != nil {
+			return fmt.Errorf("unable to import output "+
+				"proofs: %w", err)
+		}
+	}
+
 	log.Infof("Finalizing close for ChannelPoint(%v): ", desc.ChanPoint)
 
 	defer delete(a.closeInfo, desc.ChanPoint)
diff --git a/tapchannel/aux_sweeper.go b/tapchannel/aux_sweeper.go
index 7ac01f081..68dabba0c 100644
--- a/tapchannel/aux_sweeper.go
+++ b/tapchannel/aux_sweeper.go
@@ -757,15 +757,18 @@ func (a *AuxSweeper) importCommitScriptKeys(req lnwallet.ResolutionReq) error {
 
 // importOutputProofs imports the output proofs into the pending asset funding
 // into our local database. This preps us to be able to detect force closes.
-func (a *AuxSweeper) importOutputProofs(scid lnwire.ShortChannelID,
-	outputProofs []*proof.Proof) error {
+func importOutputProofs(scid lnwire.ShortChannelID,
+	outputProofs []*proof.Proof, courierAddr *url.URL,
+	proofDispatch proof.CourierDispatch, chainBridge tapgarden.ChainBridge,
+	headerVerifier proof.HeaderVerifier, groupVerifier proof.GroupVerifier,
+	proofArchive proof.Archiver) error {
 
 	// TODO(roasbeef): should be part of post confirmation funding validate
 	// (chanvalidate)
 
 	// First, we'll make a courier to use in fetching the proofs we need.
-	proofFetcher, err := a.cfg.ProofFetcher.NewCourier(
-		a.cfg.DefaultCourierAddr, proof.Recipient{},
+	proofFetcher, err := proofDispatch.NewCourier(
+		courierAddr, proof.Recipient{},
 	)
 	if err != nil {
 		return fmt.Errorf("unable to create proof courier: %w", err)
@@ -790,11 +793,16 @@ func (a *AuxSweeper) importOutputProofs(scid lnwire.ShortChannelID,
 			return fmt.Errorf("unable to convert script key to "+
 				"pubkey: %w", err)
 		}
+
 		inputProofLocator := proof.Locator{
 			AssetID:   &proofPrevID.ID,
 			ScriptKey: *scriptKey,
 			OutPoint:  &proofPrevID.OutPoint,
 		}
+		if proofToImport.Asset.GroupKey != nil {
+			groupKey := proofToImport.Asset.GroupKey.GroupPubKey
+			inputProofLocator.GroupKey = &groupKey
+		}
 
 		log.Infof("Fetching funding input proof, locator=%v",
 			spew.Sdump(inputProofLocator))
@@ -814,13 +822,13 @@ func (a *AuxSweeper) importOutputProofs(scid lnwire.ShortChannelID,
 		// Before we combine the proofs below, we'll be sure to update
 		// the transition proof to include the proper block+merkle
 		// proof information.
-		blockHash, err := a.cfg.ChainBridge.GetBlockHash(
+		blockHash, err := chainBridge.GetBlockHash(
 			ctxb, int64(scid.BlockHeight),
 		)
 		if err != nil {
 			return fmt.Errorf("unable to get block hash: %w", err)
 		}
-		block, err := a.cfg.ChainBridge.GetBlock(ctxb, blockHash)
+		block, err := chainBridge.GetBlock(ctxb, blockHash)
 		if err != nil {
 			return fmt.Errorf("unable to get block: %w", err)
 		}
@@ -858,9 +866,9 @@ func (a *AuxSweeper) importOutputProofs(scid lnwire.ShortChannelID,
 		}
 
 		fundingUTXO := proofToImport.Asset
-		err = a.cfg.ProofArchive.ImportProofs(
-			ctxb, a.cfg.HeaderVerifier, proof.DefaultMerkleVerifier,
-			a.cfg.GroupVerifier, a.cfg.ChainBridge, false,
+		err = proofArchive.ImportProofs(
+			ctxb, headerVerifier, proof.DefaultMerkleVerifier,
+			groupVerifier, chainBridge, false,
 			&proof.AnnotatedProof{
 				//nolint:lll
 				Locator: proof.Locator{
@@ -932,8 +940,11 @@ func (a *AuxSweeper) importCommitTx(req lnwallet.ResolutionReq,
 	// for the funding transaction here so we can properly recognize the
 	// spent input below.
 	if !req.Initiator {
-		err := a.importOutputProofs(
+		err := importOutputProofs(
 			req.ShortChanID, maps.Values(fundingInputProofs),
+			a.cfg.DefaultCourierAddr, a.cfg.ProofFetcher,
+			a.cfg.ChainBridge, a.cfg.HeaderVerifier,
+			a.cfg.GroupVerifier, a.cfg.ProofArchive,
 		)
 		if err != nil {
 			return fmt.Errorf("unable to import output "+