1658 Cole Blvd., Building 6, Suite 200, Lakewood, CO 80401
4582 S. Ulster St., Suite 103, Denver, CO 80237
Call Us: (303) 670-9855
Email: info@dslawcolorado.com
July 5, 2017
Think twice before making gifts from one spouse to the other if there is any likelihood a divorce could follow someday. In the case of Nelson v Nelson, decided on December 16, 2016 by the District Court of Appeal of Florida Second District, the husband and wife’s California home was transferred into a marital trust for the wife. The wife also served as the trustee. When a divorce ensued, the assets of both spouses were subject to division between the spouses. Continue reading
June 21, 2017
Jay Adkisson recently highlighted the Nevada case of Transfirst Group, Inc. v. Magliarditi, 2017 WL 2294288 (D. Nev., May 25, 2017), in which fraudulent transfers (i.e., transfers of assets made to frustrate a creditor) were the subject of an injunction to prevent the debtor from moving assets beyond the creditor’s reach. The creditor took the position that certain entities (LLC, corporation, partnership, trust) were merely alter egos of the debtor, and therefore those entities were also subject to the claims that the creditor held against the debtor. Continue reading
June 14, 2017
I would like to thank Alexander Bove and Melissa Langa for reminding me through Leimberg Information Services, Inc. of the Ferri vs. Powell-Ferri case and the more recent update pertaining to the Massachusetts Supreme Court case (the cite for which is MICHAEL J. FERRI, trustee vs. NANCY POWELL-FERRI, SJC-12070 (Suffolk 3-20-17), which addressed specific aspects of the case. Continue reading
June 8, 2017
In the bankruptcy case of In re Cleveland, a debtor found just how non-protective a limited liability company (LLC) one-member can be in the face of creditors. The court ruled that such an LLC provides absolutely no protection from the LLC-owner’s creditors. Continue reading
June 6, 2017
For those who have been saying that domestic asset protection trusts (“DAPTs”) don’t work, the new Nevada Supreme Court case of Klabacka v Nelson has at least concluded that with regard to Nevada residents, Nevada asset protection trusts do work, even in highly sensitive situations that involve divorcing spouses. Continue reading
May 3, 2017:
Over the recent years, Nevis has added barriers to those creditors who seek to seize assets from targeted debtors. For starters, in order for a creditor to lay claim to assets in a Nevis LLC, the creditor must prove beyond a reasonable doubt (a very tough hurdle to overcome in a Nevis court) that the debtor, at the time he transferred the assets to the Nevis LLC, (1) intended to defraud that creditor and (2) was rendered insolvent by the transfer to the LLC, considering all of his assets including the full fair market value of the LLC interest. Continue reading
April 27, 2017
As I again read through the Delaware Court’s view in the recent Kloiber case about a Delaware trust that a divorcing spouse wanted to tap into as part of a divorce settlement, I could not help sense that the Delaware Court took every opportunity to suggest that Delaware law may not be available to protect the Delaware trust assets. Continue reading
April 19, 2017
Mr. Reynolds encountered debt problems at a very inconvenient time. He had inherited a trust with multiple millions of dollars in it from his parents when they died. The very thought of such new found wealth going to pay multiple creditors can leave a bad taste in one’s mouth. Mr. Reynolds was hopeful that he could file for Chapter 7 bankruptcy relief from his debts while still being able to receive sizable distributions from the trust his parents had created for him. Continue reading
April 5, 2017
In a Hawaii Supreme Court case, a debtor engaged in a fraudulent transfer to a Hawaii asset protection trust. The debtor was hoping to rely on Hawaii’s one year statute of limitations period that bars any fraudulent transfer claims after a transfer to such a trust is discovered by the creditor (plaintiff). Continue reading
March 22, 2017
Belize law compared to other offshore trust asset protection laws has some interesting aspects. Most offshore laws allow a creditor a certain period (typically 2 or more years) to bring a case in court to show that the assets that were transferred into the trust were fraudulent transfers. Continue reading