Frank Baldino (Lerch, Early & Brewer LLP): Revocation of Revocable Trust was Fraudulent Transfer (December 30, 2022)

Frank Baldino, of Lerch, Early & Brewer LLP, has made available for download their article, “Revocation of Revocable Trust was Fraudulent Transfer,” published in JDSUPRA. The abstract is as follows:

This article first appeared in the December 2022 Edition of the Estate Planning Journal.

In JPMorgan Chase Bank, N.A. v. Winget, the United States Court of Appeals for the Sixth Circuit addressed whether Larry Winget (Winget) could revoke the Larry J. Winget Living Trust (Trust) to make the assets unreachable to JPMorgan Chase (Chase). Winget appealed after the district court held that Winget’s revocation of the Trust was a constructively fraudulent transfer under the Michigan Uniform Fraudulent Transfer Act (MUFTA), Winget was unjustly enriched by distributions made from the LLCs in the Trust, and imposition of a constructive trust over the distributions was proper. The appellate court upheld the district court’s rulings except for certain amounts of the distributions that were determined to unjustly enrich Winget.

Click here to view Frank Baldino’s summary of “Revocation of Revocable Trust was Fraudulent Transfer”

Posted by Melissa Zheng, Associate Editor, Wealth Strategies Journal.