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Dad wants me to put his assets in my name. Shady?
taketheblack
Registered User regular
Registered User regular
My father has been going through some rough times financially over the past 2 years. He has worked a steady government job for 22 years and is about 3 years from retirement. At some point in the past 6 months his credit collapsed and he filed for bankruptcy. He inherited a house from my grandparents recently and has moved in with his fiancee and soon to be wife. Apparently the bank is taking his old apartment soon.
He called me today about putting his cars, the new house, and the boat in my name. I have little reason to think badly of my father but people do things when they are scared. He has been deliberately vague with details.
What does this mean?
He called me today about putting his cars, the new house, and the boat in my name. I have little reason to think badly of my father but people do things when they are scared. He has been deliberately vague with details.
What does this mean?
taketheblack on
0
Posts
Pretty sure hiding assets from the bankruptcy court is illegal.
edit: more info.
http://www.moranlaw.net/nogiveaway.htm
http://www.avvo.com/legal-guides/ugc/how-to-protect-your-assets-when-you-file-bankruptcy
http://www.filing-bankruptcy-form.com/fradulent-transfers.html
edit edit: What state do you live in?
but they're listening to every word I say
This is certainly what it means.
I will protect him if I have to.
Am I liable if he is caught?
He should talk to a lawyer though, and if you are seriously thinking about doing this, so should you.
read my edits from my last post.
but they're listening to every word I say
In order to transfer anything to you he would have to do paperwork, which will leave a trail, which the bankruptcy court will find. They will then take the assets away from you. Plus if they find he has been trying to hide assets they will simply deny the discharge of his debt, then he is screwed forever.
but they're listening to every word I say
T jebus: Florida
Reading over those links now.
I need to find out if he has a lawyer tomorrow.
http://www.bankruptcyaction.com/flexemptions.htm
http://www.alperlaw.com/statutory_protection.html
a quick search brought these up too.
but they're listening to every word I say
1. Your dad needs to lawyer up.
2. Transferring assets to a family member/someone else to avoid having the government take them away is called transfer fraud. This is a bad thing. I'm not sure about your liability in the mess if your dad is caught*, so your best bet is to not get involved at all.
* Your dad will be caught.
Five minute title search would be all it would take.
Yeah. This doesn't exactly seem like a genius plan here. I wanted to reserve judgment until I knew more.
Well. This conversation is going to suck.
It doesn't have to, man. I know it's not exactly the best conversation to have, but both of you are adults and this is an adult conversation.
Just explain to him that he needs to lawyer up and that you don't think it's a good idea for him to transfer his assets until a lawyer tells him it's okay to do so.
They're going to have a list of every one of your father's assets and when they discover that the stuff is no longer in his name, they're going to see that it's in yours. When they discover that you didn't give a reasonable amount of money for them, that he could use to pay off his debt, it's going to throw up all kinds of red flags.
There's plenty of ways a lawyer can help him work around this though and keep some of that stuff.
Also, not to get dickish about it, but if your dad is saddled with a lot of debt, does he need Cars (plural), a freaking boat, and an extra house?
Is there any reason he can't sell that stuff and pay off his debts outright to avoid bankruptcy?
Then, when the bankruptcy court starts trying to get money from him, they're just going to take it all from you anyway, as it was transfer fraud.
Actually when gifting items that exceed the gift tax exclusion limitation ($13K per gifter per year) the gifter is the one who incurs tax liability. It's akin to the estate tax. However, I believe there is no estate tax this year (this expires in 2011 unless extended) and I think that extends to the gift tax. You'd need to talk to a tax professional to know for sure.
This is aside from the transfer fraud issues though.
All of my applications for grants for college were denied because of it. I didn't realize that would happen. I would have had to prove I wasn't really a dependent--in essence screwing over my dad. When he found out, he continued to claim me until the legal maximum age, because "well you already can't get those grants". I didn't get to go to college.
Everything turned out fine in the end, but if I could go back and re-do it, I would have not let him declare me.
What I'm getting at is that there can be some consequences and penalties that stick with you for YEARS after the fact. I would definitely not let him do it. Consult with a lawyer of your choosing on the matter first. It may be hard to get the advice for free, but it'd be worth the 180 bucks or whatever the lawyer charges.
Also: financial problems can be an early symptom of alzheimer's. How is your dad doing otherwise? These problems just came out of no where?
http://www.irs.gov/businesses/small/article/0,,id=224515,00.html
Just in case the OP, or anyone skimming the thread, took interest in Djeet's statement.
There isn't a way this is going to work out unless you pay him a fair market value for the property that would become yours. (And then he used that money to pay his debtors.)