Good intentions – Don’t let asset transfers run afoul of the law
Abstract: With the current estate tax regime of a high gift and estate tax exemption amount and low estate tax rates, transferring wealth is becoming the focus of estate planning rather than reducing estate tax liability. And with asset values still relatively low, it’s an ideal time to transfer wealth to loved ones. But it’s important to be familiar with fraudulent transfer laws. Simply put, a creditor can challenge gifts, trusts and retitled property as fraudulent transfers. This article discusses not only actual fraud, but “constructive” (unintended) fraud, and how to guard against creditor challenges.