This column discusses an article by Chuck Rubin about the Uniform Voidable Transactions Act (UVTA). According to the article this act might be a threat to the sort of debtor protections that exist outside of UVTA. This is an act that has been enacted in several states and is a reworking of fraudulent conveyance law. This “allows a creditor to avoid transfers made that attempt to put property beyond the reach of a creditor.” There are some attorneys who might be realizing that this statute could threaten certain debtor protections. “Other concerns are being raised about how the UVTA may interfere with other business and tax planning, such as its potential application to swap powers in grantor trusts (which may be used to obtain a step up in basis at death) and transfer of property to business entities by debtors.”
See Pooja Shivaprasad, Uniform Voidable Transactions Act (UVTA) Threatens Asset Protection Planning, Wealth Strategies Journal, April 7, 2016.
Special thanks to Jim Hillhouse for bringing this article to my attention.
