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May 4, 2009 
One of the most basic things to understand about asset protection is that it needs to be pro-active. Things need to be set up properly and the assets properly protected PRIOR to any lawsuit or other creditor action.
In 1984, the Uniform Fraudulent Transfer Act was modernized and the primary intent is to protect creditors (people that have a claim on part of your assets) from fraudulent attempts by the debtor to hinder, delay or escape paying their debts. This typically is accomplished by fraudulently conveying (giving) away your property to someone else without receiving similar value in return.
How does the court determine if a transfer is fraudulent?
The primary issues that come into play with such transfers are the intent of the debtor—was he or she acting in a fraudulent manner to escape this debt? A few questions that are asked:
□ Was the transfer made after the creditor action?
□ Did the debtor suspect the creditor action?
□ Did the debtor attempt to hide the transfer?
□ Was the transfer made to a relative, close friend or business associate?
□ Was the transfer unreasonable? (was it a fair exchange?)
In cases where the transfer was fraudulent, the court will often reverse the transfer leaving your assets available to satisfy the debt. I think these laws are fair, and I don’t believe that people should shirk their legitimate debts through such fraudulent tactics. It is in your best interests to put together a complete plan to protect your assets within the letter and spirit of the law before any trouble arises.
If you wait, it is too late…
Rob
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• May 4, 2009 @8:36 am
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