A fraudulent conveyance happens when someone illegally transfers assets or property into someone else's name, such as spouse, friend or family member, or even a business partner, in an attempt to avoid creditors. If they are selling your property or other assets to someone they know for an insignificant amount of money, they are either trying to evade creditors or trying to keep the property or assets out of the reach of a creditor.
Let's look at how to make sense of fraudulent conveyance and the land trust.
If you are going to be taken to court soon, there are ways to protect yourself and your property and assets legally:
There are certain things the courts will look at when deciding whether or not you are potentially commiting the illegal act of a fraudulent conveyance:
The solution to the problem of fraudulent conveyance is to act before one of these "warning signs" happens. A land trust with an LLC as beneficiary can help you protect yourself before you are taken to court. You want to ensure everything is done legally, however, because if they can prove a fraudulent transfer was made, you will be in some major trouble, legally speaking.
Scott Royal Smith is an asset protection attorney and long-time real estate investor. He's on a mission to help fellow investors free their time, protect their assets, and create lasting wealth.
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