Florida Courts Extend Statute of Limitations for Fraudulent Transfers up to 20 Years!
In a recent Florida appeals case (Biel Reo v. Barefoot Cottages Development, 2014) two debtors defaulted on a loan and shortly thereafter transferred millions to irrevocable trusts naming their wives as trustees. The creditor obtained a judgment and pursued collection efforts through the court arguing the wives received “fraudulent transfers”. The trial court ruled in favor of the trustee-wives because the statute of limitations (SOL) for fraudulent transfers had expired, therefore the funding of the trusts could not be reversed. On appeal, however, the court reversed and found that the SOL did not apply, and the period for collection extended for the 20-year life of the judgment!
The fear is that courts will not respect the statutes of limitation for fraudulent transfers, allowing assets in protective entities to be available to creditors as long as 20 years after funding. This casts doubt on the integrity of domestic Asset Protection planning, confirming that effective Asset Protection requires the ability to ultimately remove assets from the reach of US courts. The Bridge Trust ® is just this kind of protective entity that can place your assets in a jurisdiction that does not recognize US courts or judgments.
Timing is critical when it comes to asset protection. The time to protect assets is NOW, before you face a judgment. Waiting only increases the risk of fraudulent transfer allegations, potentially creating a 20-year window in which you cannot do much to protect yourself and family.
For a more detailed discussion click HERE.
Basically, even if you have an offshore asset protection trust wrapped in an llc…the courts can still throw you in jail for non-compliance…So, there must be a better way then these asset protection trusts to protect your money from these criminals who run the courts and this country…