US Supreme Court Equates “Fraudulent Transfer” with “Fraud” in Bankruptcy

On May 16, 2016, the United States Supreme Court issued a slip opinion in the case of Husky International Electronics, Inc. v. Ritz, 578 U.S. __, Case No. 15-145 (2016).  Sifting through the history of fraudulent transfer law, the Supreme Court concluded that the term “actual fraud” – for purposes of denying a discharge in bankruptcy – includes “fraudulent conveyance schemes,” …

Proposed Regulations: Foreign-Owned Single Member LLCs to Obtain EINs, File Form 5472

Is the United States a Tax Haven for Foreigners? For many years, foreigners have enjoyed the freedom to form LLCs in the United States, whether as a means to access the U.S. banking system, to gain anonymity or asset protection benefits for their investment holdings, or possibly to avoid taxation of investment income in other jurisdictions. Foreigners are subject to …

Seventh Circuit Rules Lease Termination to be “Transfer”

The Seventh Circuit recently issued a ruling in a bankruptcy proceeding that has important implications for asset protection planners.  In In re: Great Lakes Quick Lube LP, No. 15-2093 (7th Cir. March 11, 2016), the Seventh Circuit concluded that a lease termination in anticipation of a tenant’s bankruptcy constituted a fraudulent transfer, entitling the creditors in bankruptcy to reach the unamortized …

7th Circuit Pierces Veil in $34M Fraudulent Transfer Case

On March 22, 2016, the United States Court of Appeals for the Seventh Circuit issued its ruling in the case of Continental Casualty Company v. Alan Symons et al., Nos. 14-2665, 14-2671 & 15-1061 (7th Cir. 2016).  The case is particularly novel for its use of the alter ego doctrine to pierce the veil of limited liability, holding shareholders and officers …

The Wyoming Qualified Spendthrift Trust – An Overview

Domestic asset protection trust planning in Wyoming dates back to 2007, when the state enacted legislation recognizing a form of trust labeled the “Qualified Spendthrift Trust.” A settlor may create a Qualified Spendthrift Trust with a trust instrument appointing a “qualified trustee” for “qualified trust property” if the trust agreement meets the following requirements:[1] The trust agreement stipulates that the …

Asset Protection Defined

“Asset protection” is a term used to describe legal planning that shields your assets from the unanticipated claims of creditors.  Asset protection planning employs any number of techniques in isolation or in conjunction to achieve this objective.    Embedded within this definition are a number of terms and principles that you should be aware of: Legal Planning:  We are talking about …

What is a Fraudulent Transfer?

You must first understand what a fraudulent transfer is, and what it is not.  Let us start with what it is not:  A fraudulent transfer is not a “fraud,” at least, not usually.  Instead, the term “fraudulent transfer” is a legal concept describing a transfer in which the transferor intends to deprive a creditor the ability to reach the property …