What Is The Statute Of Limitations On A Fraudulent Transfer

by Bruce Givner on October 14, 2011

If you transfer an asset, how long must you wait before the transfer is protected from a charge of being a fraudulent transfer? In California the statute of limitations on a fraudulent transfer has three parts: 4 years – 1 year – 7 years. Here’s what that means. If you transfer an asset, the creditor has 4 years from the date of transfer to claim that it was actually a fraudulent transfer. Once 4 years have expired, he cannot make that claim. However, if the creditor was unaware of the transfer, and most creditors are unaware, then the creditor has an additional one year after becoming aware to make the fraudulent transfer claim. However, in no event can the fraudulent transfer claim be made more than 7 years after the transfer. You have an advantage when transferring real estate because real estate transfers must be recorded with the County Recorder. And a recorded deed is deemed to give notice to the world. So even if the creditor is unaware of your transfer of your home, for example, to a qualified personal residence trust, the creditor only has 4 years to complain that it was a fraudulent transfer.

In future blogs we’ll discuss what happens if only a couple of years have passed since you made the transfer, and we’ll discuss the fraudulent transfer statute in Nevada.

{ 11 comments… read them below or add one }

Rubin Sender October 21, 2011 at 1:48 am

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Bubby October 29, 2011 at 6:11 pm

Thanks alot – your answer solved all my problems after several days sturggilng

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admin October 21, 2011 at 9:06 pm

Thank you. We are here to help. Did you have any questions?

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Kory October 27, 2011 at 10:47 pm

God help me, I put aside a whole afternoon to figure this out.

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admin October 28, 2011 at 10:44 am

Kory did you have any questions?

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admin October 21, 2011 at 9:09 pm

Did you have any questions?

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Lynsey October 27, 2011 at 5:00 am

I much prefer informative articles like this to that high brow stuff.

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Trevion October 29, 2011 at 9:22 pm

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admin October 30, 2011 at 12:12 pm

I can not agree more. Trevion is there anyway we may be of assistance?

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Benito Perze November 2, 2011 at 6:19 am

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admin November 2, 2011 at 9:30 am

Thank you for stopping by Benito. We will have lots more great articles in the future. Do you already have an estate plan?

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