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How can one reduce their chances of a fraudulent transfer claim?

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Use common sense. Avoid the badges of fraud. Don't invite suspicion and inquiry. Your transfers must pass a 'sniff' test. First, protect yourself before you have a liability. There's no fraudulent transfer if you transfer your assets before you incur the liability. That's the reason for the axiom to judgment-proof yourself before you have financial or legal problems. Your safest strategy is to be liability-free when you protect your assets. If you still have fraudulent transfer concerns, make small incremental transfers which will attract less notice than sudden transfers of more significant assets. Also avoid insider transactions. Transfers to family members, friends or close business associates are always suspicious. Use non-family members as trustees, corporate officers or fiduciaries for any entities receiving your assets. Your transfer should not have the obvious goal of defrauding a present creditor. It might better appear that you were engaged in estate planning. Finally, carefully document what you receive for your property. Can you prove you were adequately paid in cash, services or other consideration? Verify the value of your property to show fair consideration. For example, get your home appraised if you sell it to a friend or relative. If you sell assets for an unreasonably low price, document defects or other reasons to justify its low price.

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