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Ask Attyadvisor Your Own Question
Attyadvisor, Attorney
Category: Real Estate Law
Satisfied Customers: 6895
Experience:  29 years of experience in General Practice, Real Estate Law and Estate Law.
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I have hospital and I R S DEBTS. If I quit claim my house to

Customer Question

I have hospital and I R S DEBTS. If I quit claim my house to my son can they still put a levy or claim against the property.
Submitted: 1 year ago.
Category: Real Estate Law
Expert:  Attyadvisor replied 1 year ago.

Can you tell me the State that your question pertains to? As a general rule a transfer of any assets to avoid paying a debt or a lien on your property is considered a fraudulent transfer. The Federal Government would view this as a fraudulent transfer.

Customer: replied 1 year ago.
State of Arizona. Haven't incurred the debt yet. But need immediately hospital care today. No medical. No money.
Expert:  Attyadvisor replied 1 year ago.

I am an Arizona licensed attorney. There is a look back period for fraudulent conveyances so my concern would be that you COULD be charged with fraud. It may be more helpful to place the property in a trust as that would make it a little harder to attach. Which county are you located in so I can provide you with a link for local estate planning attorneys that provide free consultations and give you some peace of mind?

Customer: replied 1 year ago.
IRS has already levied my bank. Taking $1,000.00 by the 26th. Overdraft of additional near $6,000.00. This was a tobacco tax from 2007 when I was buying on line for a number of people who are deceased now. They said they can go back 10 years prior to the Pact Act. I couldn't afford the thousand much less the 6,000. So can they put a levy on my house if I quit claim it to my son. Or is this considered illegal.
Customer: replied 1 year ago.
Phoenix - Maricopa County.
Customer: replied 1 year ago.
This is the State of Arizona Internal Revenue. Tobacco Tax.
Expert:  Attyadvisor replied 1 year ago.

I understand your dilemma.

It would be considered fraud under both State and Federal law. I don't want to see you have additional issues due to the transfer by quit claim. I know that this is not the answer that you were hoping to receive however, I have an ethical duty to provide you with the law.

I am providing a link for the applicable Arizona Statute as well as anadditional link for the history of the law.

Chapter 8


Article 1

Uniform Fraudulent Transfer Act

“Arizona Revise Statutes 44-1004. Transfersfraudulent as to present and future creditors

A. A transfer made or obligationincurred by a debtor is fraudulent as to a creditor, whether the creditor'sclaim arose before or after the transfer was made or the obligation wasincurred, if the debtor made the transfer or incurred the obligation under anyof the following:

1. With actual intent to hinder, delayor defraud any creditor of the debtor.

2. Without receiving a reasonablyequivalent value in exchange for the transfer or obligation, and the debtoreither:

(a) Was engaged or was about to engagein a business or a transaction for which the remaining assets of the debtorwere unreasonably small in relation to the business or transaction.

(b) Intended to incur, or believed orreasonably should have believed that he would incur, debts beyond his abilityto pay as they became due.

B. In determining actual intent undersubsection A, paragraph 1, consideration may be given, among other factors, towhether:

1. The transfer or obligation was toan insider.

2. The debtor retained possession orcontrol of the property transferred after the transfer.

3. The transfer or obligation wasdisclosed or concealed.

4. Before the transfer was made orobligation was incurred, the debtor had been sued or threatened with suit.

5. The transfer was of substantiallyall of the debtor's assets.

6. The debtor absconded.

7. The debtor removed or concealedassets.

8. The value of the considerationreceived by the debtor was reasonably equivalent to the value of the asset transferredor the amount of the obligation incurred.

9. The debtor was insolvent or becameinsolvent shortly after the transfer was made or the obligation was incurred.

10. The transfer occurred shortlybefore or shortly after a substantial debt was incurred.

11. The debtor transferred theessential assets of the business to a lienor who transferred the assets to aninsider of the debtor.”

“UniformFraudulent Transfer Act (UFTA)

In 1984, this Uniform FraudulentConveyances Act was revised and renamed the Uniform Fraudulent Transfer Act(UFTA). Under state and federal fraudulent transfer laws, a person who owes adebt cannot transfer or convey assets if the intent is to hinder, delay ordefraud his creditors. The UFTA creates a right of action for any creditoragainst any debtor and any other person who has received property from thedebtor in a fraudulent transfer. The UFTA has been adopted in many states, andothers have enacted similar laws prohibiting a debtor from transferring assetsin order to keep creditors from being paid.

Because it is difficult to proveintent to defraud, laws prohibiting fraudulent transfers are often assumed tobe violated if a "badge of fraud" is present. Thus, the debtor isassumed to have made the transfer to defraud creditors in violation of the UFTAor other state fraudulent transfer laws if she:

  • makes the transfer directly after being sued or threatened with litigation (suspicious timing);
  • transfers property to a business partner, friend or relative (an insider);
  • actually controls the property although it is no longer in her name;
  • sells the asset for a price below its value; and/or
  • transfers everything she owns, leaving no assets for herself. “

Please give me a moment to provide you with a link for local attorneys that may be able to assist you with some asset protection that would not be illegal.

Expert:  Attyadvisor replied 1 year ago.

Below is a link for asset protection attorneys in your area that provide free consultations.

If you would be kind enough to rate my service positively so I may receive credit for my work I would appreciate it. Thank you for using JA!

Expert:  Attyadvisor replied 1 year ago.

Just wanted to check to see if you have any additional questions for me?

Expert:  Attyadvisor replied 1 year ago.

I wanted to follow up with you to see if everything is working out for you. Were you able to meet with an an attorney discuss asset protection?