Posted by Wayne-NC on October 12, 2006 at 16:26:12:
Thanks, that is what I kind of expected. It is very subjective and not carved in stone as I mentioned about Medicaid. Key words in your answer are “should have known”. Well, should a, could a, would a, can go a long way in court. Now I can “donate” to my LLC with confidence. Hopefully you have some experience fomulated into your answer. It sounds like it. Again, thanks.
Fraudulant Conveyance? - Posted by Wayne-NC
Posted by Wayne-NC on October 08, 2006 at 13:04:05:
I have an LLC containing “safe” assets and from time to time make capital contributions from HELOC’s on my investment properties incurring more debt. In essence I am transfering equity into a safe haven and then it gets invested in notes, deeds of trust, or in one case lent back to me personally secured by a 3rd deed of trust that again is held by the LLC. To set the record straight, all transactions were done with the proper paper trail, above board, legally and through a local RE attorney who studied the matter and concluded that it will hold up in the local system of judges should the need arise. With that said, my question is if a large transfer (capital contribution) was made BEFORE a lawsuit, will a judge “look back” (ala medicaid) for a period of time and force a reversal of the transaction from my LLC back to me personally making it seizable assets? If so, how long is the look back period or when will the transaction be secure and out of reach? I understand that assets are frozen when a lawsuit is filed and any such transfer post filing can be reversed.
Re: Fraudulant Conveyance? - Posted by BB
Posted by BB on October 09, 2006 at 21:06:22:
Generally, courts go back to the date of the occurrence, ie when you knew or should have known that a liability /adverse claim ( not necessarily a lawsuit)did or was going to bloom. Caveat: judges have wide discretion for fraud!!