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Phil answered the tax questions. So, here's a quick take on the legal issue.

These gifts will do nothing -- zippo, zero, nada -- to protect these assets. In any jurisdiction in the US they would be voidable fraudulent transfers. In other words, creditors could reach the assets with little trouble. This is a civil issue not a criminal issue, generally (except in California where fradulent transfers can cause criminal liability, but are rarely prosecuted), with the result usually just being that the person with the assets has to cough them up, though there could be greater civil liability for civil conspiracy to defraud a creditor. However, if bankruptcy comes into play, all bets are off and your participation in this kind of a deal could implicate you in a big mess, including criminal bankruptcy fraud.
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