New York Fraudulent Transfers
Estate Planning brings up many thorny issues. Often people in an effort to protect their estate or lessen their tax burden may inadvertently create a problem for themselves. Fraudulent Transfers, (also known as fraudulent conveyances) is one such area. A Fraudulent Transfer occurs where assets are transferred to a Trust, for instance, with the intention of hindering or delaying the action of a specific creditor. This may be done innocently by the individual, however if the court determines that the intention of the conveyance was fraudulent, the court can reverse the transaction and use the asset to satisfy a creditor’s judgment. The best way to avoid this type of situation is to be sure you are working closely with a qualified New York Fraudulent Transfers Lawyer to ensure that your Estate Planning and asset protection planning is not only effective, but is also free of any complications.
New York law allows for individuals to limit personally liability by taking action in various ways to protect assets. One such method is to make irrevocable transfers of their assets, often into a Trust, that allows the individual to still use and enjoy the asset, while protecting it from creditors. However, if a creditor feels that this transfer was made with fraudulent intent by the individual, the creditor may ask the court to unwind the transaction.
The law provides that transfers to irrevocable trusts are deemed valid for the purposes of sheltering assets where the grantor does not reserve the power to revoke the Trust or dispose of the property during his/her lifetime. It stands to reason that someone may not transfer assets into a Trust and continue to enjoy the assets benefits while at the same time be sheltered from creditors with the intent to defraud them.
A Trust is a useful tool for many reasons, but should always be created with the guidance and advice of a qualified New York Estate Lawyer. Trusts can protect assets, reduce taxes, and help avoid Probate.
If you are creating a Trust or other Estate Planning document such as a Will & Testament, Living Will or Power of Attorney, contact the Law Offices of Stephen Bilkis & Associates, PLLC. We have experienced New York Probate Lawyers who can lend you advice, as well as a completely free consultation. We have offices in Manhattan, Brooklyn, Bronx Queens Staten Island to Long Island in both Nassau County and Suffolk County and Westchester County. as well as many additional locations throughout New York. Call us today to find out more and schedule your consultation at 800.696.9529.