If I own 52 acres and want to gift it to daughter but I have credit card judgments against me, will this affect things?
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If I own 52 acres and want to gift it to daughter but I have credit card judgments against me, will this affect things?
Asked on June 26, 2015 under Real Estate Law, Texas
Answers:
M.D., Member, California and New York Bar / FreeAdvice Contributing Attorney
Answered 8 years ago | Contributor
First of all, if your creditors have placed liens on the property, then while you can transfer it to her, she will take ownership subject to those liens. If the property has not been liened, then she will take the property free and clear. That having been said, your creditors could claim that you made this gift in order to defeat their legal claims against you.
The fact is that it is unlawful for a debtor to intentionally place their property beyond the reach of their creditors. The intentional conveyance of property (or other assets) to avoid payment of a claim for money owed is called a "fraudulent conveyance." And the fact that this transfer is to an your daughter for no consideration could well qualify. This means that your creditors could undo the transaction. Depending on the amount of debt involved, they may or may not go to the trouble of making such a claim. However, 52 acres constitues a considerable asset.
At this point, you should consult directly with an attorney in your area. After hearing all of the details of your situation, they can best advise as to your rights under specifc state law.
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