The Comments to the Uniform Voidable Transactions Act Relating to Self-Settled Spendthrift Trusts are Correct
Tax Management Estates, Gifts, and Trusts Journal, vol. 42, no. 5 (Sept./Oct. 2017), pp. 267-272
7 Pages Posted: 18 Sep 2017
Date Written: July 31, 2017
Abstract
The comments to the Uniform Voidable Transactions Act (formerly named the Uniform Fraudulent Transfer Act), originally written in 1984, were refreshed in connection with the 2014 amendments. The comments make reference to the unanimous body of cases holding that a transfer by a debtor to a spendthrift trust for the debtor’s own benefit — i.e., an asset protection trust — is a fraudulent transfer. Vendors of asset protection trusts are seeking to suppress those comments. The arguments they advance for suppression of those comments have no merit at all.
Keywords: fraudulent transfer, fraudulent conveyance, voidable transfer, Uniform Voidable Transactions Act, Uniform Fraudulent Transfer Act, asset protection trust, spendthrift trust
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