Charles E. Rounds, Jr. (Suffolk University Law School): Intersection of fraudulent conveyance doctrine and the law of trusts (February 14, 2023)

Charles E. Rounds Jr., of Suffolk University Law School, has made available for download his article, Intersection of fraudulent conveyance doctrine and the law of trusts, published in JDSUPRA. The abstract is as follows:

This posting is about a gratuitous entrustment by transfer that somehow unjustifiably
disadvantages the settlor’s creditors. The independent sole-trustee and trust beneficiaries neither knew nor should have known that the entrustment would have that effect. Settlor has reserved no beneficial interest and no powers. As between the creditors and the innocent beneficiaries, the former should prevail. The common law (as enhanced by equity) and statute each affords the creditors a possible path to restitution. Pleading in the alternative may be advisable.

Click here to view Charles E. Rounds Jr.’s summary of Intersection of fraudulent conveyance doctrine and the law of trusts.

Posted by Kaitlyn Bare, Associate Editor, Wealth Strategies Journal.