Long Island Fraudulent Transfers
A fraudulent transfer occurs when a debtor sells, gives, or otherwise transfers property to another person with the intent of keeping the property away from his (or her) legitimate creditors. Fraudulent transfers are illegal and can result in significant financial consequences to the person who made the fraudulent transfers. However, with careful advance planning with the help of an experienced Long Island fraudulent transfer lawyer, there are effective estate planning strategies to protect your wealth from creditors. This is referred to as asset protection. Asset protection is a strategy or a set of strategies designed to protect your assets such as real estate, vehicles, and other valuable property from being seized by creditors as a result of a legal action.What makes a transfer fraudulent
A red flag that a sale of property or gifting property may be a fraudulent transfer is that the owner of the property is experiencing serious financial problems and may be considering bankruptcy or is about to file for bankruptcy. Under bankruptcy law, debtors are typically required to sell property to satisfy creditors. Knowing that this is a possibility, a debtor may choose to sell or transfer nonexempt property that would be part of the bankruptcy estate in order to keep the property out of the hands of creditors.
The law allows the bankruptcy trustee to review sales and transfers of property immediately prior to filing bankruptcy to determine if the sale or transfer was made in order to avoid paying creditors. Sales of property that are significantly below market value, as well as sales or transfers to family members or friends are likely to be scrutinized carefully. How you spent the proceeds of the sale will also be examined to determine if the sale was a fraudulent transfer. If you are in a financial crisis and are considering transferring property to another person, before doing so discuss your situation with an experienced Long Island fraudulent transfers lawyer.Consequence of fraudulent transfers
If it is determined that a transfer is fraudulent, your bankruptcy case may be at risk. The trustee may recover the property and make it part of your bankruptcy estate. However, the trustee will only do so if the recipient was privy to the fraud or was not a bona fide purchaser. If the recipient was indeed a bona fide purchase, then the trustee will not attempt to recover the property.Avoiding fraudulent transfers
The best way to protect your assets from creditors is to plan in advance and to not wait until you are facing a financial crisis. With the help of an experienced fraudulent transfers attorney in Long Island, you can execute an asset protection plan that will protect your assets from future creditors. An asset protection plan may include transferring property to trusts, purchasing insurance, creating corporations, as well as other strategies. However, the type of asset protection plan depends on your specific financial situation, including the type of assets that you own. It is critical that you work with someone experience who can develop a customized plan for you. Keep in mind that asset protection planning is not only to protect assets from a future bankruptcy. It is a plan to protect assets from future lawsuits and to shield your property from creditors in other situations.Contact the Law Office of Stephen Bilkis & Associates
Protecting your wealth from future creditors is part of smart estate planning. To ensure that your asset protection plan is effective, it is important that you work with an experienced fraudulent transfers attorney serving Long Island. The attorneys at the Law Offices of Stephen Bilkis & Associates have years of experience helping clients design custom estate plans that protect their wealth and provide for a smooth transfer of wealth that minimizes taxes and the impact of probate. Contact us at 1-800-NY-NY-LAW (1-800-696-9529) to schedule a free, no obligation consultation regarding your case. We represent clients in the following locations: the Bronx, Brooklyn, Long Island, Manhattan, Nassau County, Queens, Staten Island, Suffolk County and Westchester County.