Breaking Asset Protection Plans In and Outside Bankruptcy: Techniques for Voiding Trusts and Other Transfers

Little can be more frustrating to creditors than running into an asset protection plan and feeling like recovery has hit a dead end. But these arrangements often can be invalidated and assets recovered. Just like prudent estate plans, asset protection relies on a combination of business entity formation, trusts, statutory exemptions, insurance coverage, and more to reduce risk and preserve assets. But because there is usually a very tenuous business or financial purpose for asset protection arrangements, quick formation, and reluctance to give up control, they can be attacked far more easily.

If the debtor files bankruptcy, the Bankruptcy Code provides creditors, trustees (including post-confirmation trusts), and the U.S. Trustee enhanced investigatory and avoidance powers. Even criminal prosecution for bankruptcy fraud is possible. Keeping transactions and transfers of property secret has never been harder in light of robust reporting requirements under no end of federal statutes. Machine learning and AI make spotting patterns easier and less expensive, and moving assets out of the U.S. is under increasing scrutiny.

Listen as this esteemed panel offers guidance and best practices for piercing through asset protection plans both before and in bankruptcy.

I. Commonly used asset protection arrangements

II. Investigative techniques in bankruptcy

III. Voiding trusts and other transfers

IV. Exemption limitations

V. Interests of non-debtor third-parties

VI. Using AI to detect fraud or patterns of fraud

VII. Planning ahead by making judgments bankruptcy-proof

The panel will review these and other significant issues:

• Are asset protection and estate planning different?
• What is reverse piercing?
• What is the most important step in dealing with trusts?