![]() In other words, you cannot transfer your assets to a trust and continue to keep control or get benefit out of the trust while also being protected from creditors’ claims. Under Estates, Powers & Trusts Law (EPTL) section 7-3.1, a disposition in trust for the use of a grantor is void with regard to currently existing or subsequent creditors of the grantor. Debtor and Creditor Law section 276 sets forth that any conveyance is fraudulent where it is made with actual intent to defraud, delay, or hinder present or future creditors. Debtor and Creditor Law section 275 states that obligations and conveyances without fair consideration are fraudulent when a debtor thinks he will become indebted beyond his ability to pay. Debtor and Creditor Law section 273 provides that conveyances that leave a debtor insolvent and that are made without fair consideration are fraudulent to creditors irrespective of a debtor’s intent. Under the New York Debtor and Creditor Law, when any defendant transfers property to avoid a judgment creditor, the transfer is fraudulent and may be recovered through a court action. The transfer may be made with or without actual intent to defraud. In New York, fraudulent conveyance laws safeguard creditors from circumstances in which someone transfers property or assets to the creditor’s disadvantage. For example, if a personal representative transfers money from your father’s estate into her own bank account to obtain a financial benefit, the court may determine that a fraudulent transfer occurred. Personal representatives owe a fiduciary duty to the estate and beneficiaries, and may be held accountable when they breach this duty by fraudulently transferring assets from the estate. Holding Personal Representatives Accountable Your lawyer can petition the court for the recovery of the asset at issue on the grounds that it was fraudulently transferred. If your mother was suffering from dementia at the time of the transfer, you may believe that your stepfather fraudulently influenced the decision.Īs the beneficiary or heir of an estate who suspects certain assets were transferred by means of deceit or undue influence, you are entitled to bring a claim before the Surrogate’s Court in New York City. After she had passed, you discovered that she allegedly changed her will to leave her entire estate to your stepfather, including the house she had purchased for you to inherit. For example, your stepfather was providing care to your mother. When these people alter the terms of their will to benefit a caregiver, the heirs may suspect that the caregiver placed unlawful pressure on the patient, resulting in a fraudulent transfer. Fraudulent TransfersĮlderly or incapacitated persons may face pressure and undue influence to change the disposition of their property. Jules Haas is a seasoned New York City estate litigation attorney who represents heirs and creditors interested in challenging fraudulent transfers into or out of an estate. Fraudulent transfers can result in complicated and thorny lawsuits. Fraudulent transfers can involve real property, corporate stock, bonds, bank accounts, and even gifts or bequests made due to coercion or undue influence. ![]() However, in some cases, property is transferred through deception or to avoid creditors. These decisions should be informed and carefully considered, and seeking legal counsel may ensure that the estate is adequately protected. ![]() Lawyer Handling Estate Litigation Issues in New YorkĮstate planning involves many decisions regarding how a person’s property should be distributed upon death or disability. ![]()
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