Recently, the Catholic Church in Milwaukeemoved $57 million into a trust to shield it against a judgment. In 2011, theArchdiocese filed for bankruptcy. The judge ordered that the transfer documentsbe released. Under state law, fraudulent transfers have a four-year statute oflimitations or one year staute of limitations after discovery. There is a debate about whether or notthe statute of limitations has expired on the 2007 transfer. If thetransfer was made when the Milwaukee Archdiocese was insolvent it would beconsidered a fraudulent transfer without considering the Church’s intent forthe transfer.
See Jay Adkisson, Bankrupt Milwaukee Archdioces Apparently Caught In Fraudulent Transfer, Forbes Jul. 7, 2013.
Special thanks to Jim Hillhouse (Professional Legal Marketing (PLM, Inc.)) for bringing this article to my attention.
