Your ability to transfer assets for asset protection purposes depends to a great extent on whether or not you are “insolvent” at the time of a transfer. Insolvency is generally defined in terms of your ability to pay your debts as they become due.
The Uniform Voidable Transactions Act (“UVTA”) – – a uniform law
In 2014, the National Conference of Commissioners on Uniform State Laws adopted several amendments to the Uniform Fraudulent Transfer Act (UFTA). Over 40 states have enacted some form of the UFTA, and most will likely in due course adopt the recent amendments.
One of the amendments changed the name of the law. It is now
Signing a personal guaranty for your business or a relative can have a variety of financial implications. It can also limit your asset protection alternatives.
Asset protection planning frequently involves the transfer of assets. An asset transfer will be a “fraudulent conveyance” if it renders you insolvent (that is, if it means you may not able to
About 16 states now have laws that allow a Domestic Asset Protection Trust (DAPT). These trusts can be very useful to protect assets in many situations.
But keep in mind that a DAPT (like other asset protection strategies) is designed to protect your assets and keep you out of bankruptcy. It may be less useful
Courts in a number of states have specifically held that lawyers can violate applicable disciplinary rules by facilitating fraudulent conveyances. This can result in an attorney being suspended or even disbarred.
This is one of the reasons that an attorney must conduct a certain amount of due diligence about a new client before agreeing to
A recent decision by the Ohio Court of Appeals (Second District) held that the City of Springfield, Ohio was entitled to “pierce the corporate veil” of the defendant corporation in order to reach the shareholder’s assets. The court further held that transfers totaling about $900,000 to its shareholder (proceeds from the corporation’s sale of real
A number of states have enacted Domestic Asset Protection Trust (DAPT) legislation. Ohio may soon join those states. These statutes authorize what are known as "self settled" trusts. This essentially means that the person setting up the trust is also one of its beneficiaries. Thus, the person setting up the trust is attempting
Transferring an asset under certain circumstances can constitute a fraudulent conveyance. Refusing to accept an asset can also constitute a fraudulent conveyance.
Let’s say that you owe a creditor a significant amount of money. You then learn that you have received a substantial inheritance. If you take the inheritance it will go to the creditor. So
A recent decision by the United States Bankruptcy Court for the District of Alaska (In Re: Thomas Mortensen, Case No. A09-00565-DMD) is clearly worth reading — for a discussion of fraudulent conveyances, Alaska asset protection trusts, applicable statutes of limitations, and a variety of other asset protection topics. I will likely comment on this recent
It is clearly better to engage in asset protection planning before you have any creditor issues. But planning after a lawsuit has been filed — or even after a judgment has been entered against you — is frequently possible.
State fraudulent transfer statutes vary in a number of respects. But as a general rule, a conveyance
