Tenth Circuit Allows Foreclosure on Purchase-Money Resulting Trust

TheU.S. Tenth Circuit Court of Appeals recently published an opinion concerning governmentforeclosure of property titled in the name of a trust.

InU.S. v. Tingey, the government wantedto foreclose on federal tax liens on a ski cabin titled in the name of theDouglas E. Brown Family Trust.  Brown andhis wife owed the government taxes, but not the trust.  However, the district court permitted theforeclosure after finding “that the Browns were the beneficial owners of thecabin because Brown had a purchase-money resulting trust (PMRT) arising from hishaving purchased the cabin and then conveyed it to the Family Trust.”

U.S. v. Tingey, No. 12-4000, 2013 WL2321656 (10th Cir. May 29, 2013).