Fraudulent transfer laws – Don’t let creditors undo your estate plan
Abstract: Most people wouldn’t even consider transferring or hiding assets to avoid paying their creditors. But the fraudulent transfer laws can also jeopardize perfectly innocent, legitimate estate planning moves. And if creditors challenge gifts, trusts, retitling of property or other strategies as fraudulent transfers, they can quickly undo an estate plan. This article examines the difference between actual vs. constructive fraud, and explains the importance of analyzing one’s net worth before making substantial gifts. A sidebar lists factors that may signal an intent to defraud.