A fraudulent conveyance is a civil (not a criminal) matter wherein assets are transferred with the intent to hinder or delay creditors. Whereas it is ideal put an asset protection plan into place before trouble arises, in reality, many people do not realize the need until it is too late. So, prepare for a lawsuit before it strikes if you can. However, if it is too late and you have not yet done so, don’t worry. There are ways to protect yourself after the fact.
Put Up a Fight
Fraudulent conveyance is also known as fraudulent transfer. Some people think that you find yourself dealing with a creditor, it’s over. They think that there is not a whole lot they can do to move assets protect them. Not true. If you can put up a fight, why not do it?
There are a few strategies that you can employ late in the game. For example, offshore asset protection trusts take the assets outside of the local court’s jurisdiction. So even if your opponent jumps up and down and screams “fraudulent transfer,” your offshore trustee can lace his hands behind his head, lean back in his chair and look out at the palm trees wafting in the sea breeze. The reason is that your local courts do not have jurisdiction in his country.
The judge may tell you to ask the trustee to send trust funds to your legal opponent. If you make that request against your will, your trustee will support your true desires. They will invoke the duress clause and refuse to comply. You have done your part in doing what the judge has ordered. You asked the trustee to bring back the funds. The key is to make sure your trust is properly established. If it is, a judge would be hard-pressed to find you in contempt. That is because you are not refusing to comply. You simply do not have the ability to act firsthand.
Huge Barrier for Your Opponent
This leaves your opponent a very expensive and time-consuming option: To file a lawsuit offshore. Even if he does, he will find himself in an obstacle course. One that is built intentionally to make it unlikely for him to win. A pride of lions most often eat the weakest members of the herd. So, why let yourself be easy prey? Why not be the one that puts up the biggest fight?
Fraudulent Conveyance Vs. Preparation
This is not to say that you should engage in fraudulent conveyance. It is best that you do not. It is much better for you prepare for the near inevitable. That is, set up an asset protection plan before you need it. So, this seemingly obstinate dialogue intends to give an editorial angle on the subject. It is not encouraging you to participate in this practice. It is simply saying that those who have the philosophy “I’m not going down without a fight,” put the odds in their favor over those who easily cave in.
Free Initial Consultation with an Asset Protection Lawyer
It’s not a matter of if, it’s a matter of when. Legal problems come to everyone. Whether it’s your son who gets in a car wreck, your uncle who loses his job and needs to file for bankruptcy, your sister’s brother who’s getting divorced, or a grandparent that passes away without a will -all of us have legal issues and questions that arise. So when you have a law question, call Ascent Law for your free consultation (801) 676-5506. We want to help you.
8833 S. Redwood Road, Suite C
West Jordan, Utah
84088 United States
Telephone: (801) 676-5506