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Fraudulent Transfer of Property

Fraudulent Transfers and Estate Planning in Indiana

Many different complex issues can come up in the context of managing a person's estate. Recognizing that estate planning could relate to fraudulent transfers can raise important questions for a person who is serving as a trustee or personal representative. Plenty of states have accepted the provisions that are outlined under the Uniform Fraudulent Transfer Act.

If a person who has a legal and fiduciary duty to an estate engages in questionable behavior with regarding to transferring funds, this can raise questions on the part of beneficiaries who might have been entitled to those funds. It's important for anyone accused of such an issue to understand the benefits of speaking with a lawyer as soon as possible.

This act enables creditors to challenge a money transfer involving two kinds of fraud but anyone should be aware of when putting together options for estate planning. This includes constructive fraud and actual fraud. Constructive fraud is a significant risk because it does not necessarily require the intent to defraud. An obligation or transfer could be formally viewed as constructively fraudulent if a person made it without receiving a reasonable equivalent value in exchange.

Often fraudulent transfers relate to the process of qualifying for Medicaid. Actual fraud refers to incurring an obligation or making a transfer with the actual intent to delay, defraud or hinder any creditor or probable future creditors. Anytime that a person makes a gift, either in trust or outright, that individual does not reasonably receive equivalent value in exchange. One of the key aspects of determining whether or not something is a fraudulent transfer is whether or not it makes them insolvent.

Courts evaluate surrounding facts to determine whether or not a transfer involves fraudulent intent, and insolvent refers to the fact that the sum of the debts is greater than all assets at a fair valuation. A person is considered insolvent if they are not able pay their debts as they become due. The constructive fraud element of fraudulent transfers only relates to present creditors which means those whose claims arose prior to a transfer being made or an obligation incurred.

Anyone should therefore analyze their net worth before making big gifts. It is possible to still meet the definition of insolvency even if you're not currently having trouble paying your debts. Recognizing problems with insolvency and fraudulent transfers make it important to consult with an asset protection planning attorney in Indiana.

The law typically defines this as a civil matter rather than a criminal one and is most often related to in creditor or debtor law. Fraudulent conveyance or fraudulent transfers can be avoided by enacting an Indiana asset protection plan in anticipation of a possible lawsuit in the future. Assuming that someone will sue you means that you can look towards this possibility and establish necessary plans and strategies to minimize your concerns and possible risk factors. Consulting with an Indiana fraudulent transfers lawyer could be the first step for you.         

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