Message Font: Serif | Sans-Serif
No. of Recommendations: 0
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.
Print the post  


In accordance with IRS Circular 230, you cannot use the contents of any post on The Motley Fool's message boards to avoid tax-related penalties under the Internal Revenue Code or applicable state or local tax law provisions.
What was Your Dumbest Investment?
Share it with us -- and learn from others' stories of flubs.
When Life Gives You Lemons
We all have had hardships and made poor decisions. The important thing is how we respond and grow. Read the story of a Fool who started from nothing, and looks to gain everything.
Contact Us
Contact Customer Service and other Fool departments here.
Work for Fools?
Winner of the Washingtonian great places to work, and Glassdoor #1 Company to Work For 2015! Have access to all of TMF's online and email products for FREE, and be paid for your contributions to TMF! Click the link and start your Fool career.