Definitie
A transfer of assets made with intent to hinder, delay, or defraud creditors, which courts can reverse and return those assets to the creditor's reach.
A fraudulent transfer — sometimes called a fraudulent conveyance — occurs when someone moves assets out of their name in a way that prejudices existing or reasonably foreseeable creditors. Courts and statutes in every U.S. state allow creditors to "unwind" such transfers, effectively pulling the assets back as though the transfer never happened. The legal standard covers both actual fraud (proven intent to hinder creditors) and constructive fraud (transfers that look suspicious because of timing, inadequate payment received, or the transferor's financial condition at the time).
For families exploring asset protection structures — whether a DAPT, a family limited partnership, or an irrevocable trust — the fraudulent transfer doctrine is the most important limiting concept to understand. Timing is everything. Structures established well before any creditor dispute arises stand on far stronger ground than assets moved after a lawsuit is filed or even after circumstances make a claim reasonably foreseeable.
A hypothetical real estate developer who transfers a portfolio of properties to an irrevocable trust one week after receiving a construction defect complaint is likely to find that transfer challenged and potentially reversed. The look-back periods embedded in both state fraudulent transfer laws and federal bankruptcy statutes can reach back years. A qualified attorney must assess any proposed transfer in light of the client's current creditor exposure before assets are moved.
Laatst beoordeeld August 25, 2026 · Redactioneel beleid
