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Trust Amendment as Preference or FC [2 Attachments]
Peter:
It is, but my point is that without 548(e)(1), the transfer to a self-settled trust is still a fraudulent transfer under 548(a)(1)(A) and could be brought back into the estate even if 548(e)(1) was not in the statute. Thus the net effect of 548(e)(1) is to extend the two year SOL of 546 to ten years.
I think there is problematic weakness in 548(e)(1). It requires a that the bennie of the trust be the debtor. It seems to me that 548(e)(1) could be avoided by making someone else the bennie, such as the settlors children. The debtor would still be vulnerable in a Ch. 7 under 707(b)(3), but the intent of the statute to extend the SOL to ten years for these types of transfers could be defeated.
If you have any questions or concerns, please contact me.
Pat
Patrick T. Green
Attorney at Law
Fitzgerald & Green
1010 E. Union St. Ste. 206
Pasadena, CA 91106
Tel: 626-449-8433
Fax: 626-449-0565
pat@fitzgreenlaw.com
The post was migrated from Yahoo.
548(e)(1) merely extends the fraudulent transfer SOL in 548 from 2 years to 10 years for assets transferred to a self-settled trust. In the time frame Jeff is dealing with it is not needed.
If you have any questions or concerns, please contact me.
Pat
Patrick T. Green
Attorney at Law
Fitzgerald & Green
1010 E. Union St. Ste. 206
Pasadena, CA 91106
Tel: 626-449-8433
Fax: 626-449-0565
pat@fitzgreenlaw.com
The post was migrated from Yahoo.