A fraudulent transfer or voidable transfer must be avoided if
possible when protecting your assets. If you are working out an
asset protection plan for yourself, then you should be aware of
what you can and cannot do.
Now, it probably won't surprise you to learn that the
government places a number of checks on your ability to protect
your assets. And chief among these is the limitation on fraudulent
transfer.
Fraudulent transfer, also known as fraudulent conveyance,
involves moving your assets nominally out of your possession in
order to render yourself insolvent, or "judgment
proof."
You see, it's an inescapable fact that someone can only
successfully be sued if they have the assets to pay the judgment.
If they do not, then even if the creditor wins the case, there will
be nothing to recover.
