Is this a good move for current situation

Hi everyone,

Recently I found out a friend of a friend's father (don't know this person) is in jail. He's in jail waiting for his trial but no chance of getting out of jail for at least the next 20 years.

The lawyer for the man in jail has advised the son to put all of his fathers assets under his name just in case victims of crime decide to sue, creditors, etc. The father has agreed to this. As far as I know he has a fair bit of properties.

Currently the son is in the process of transferring all his fathers assets to his own name. Surely this cannot be a good idea? Wouldn't transferring to a trust be a better idea? By transferring the assets to his own name can't the creditors and victim of crimes sue the son and at the same time placing great danger on his own assets as they are also under his own name? (He has several IPs). My thinking is if his fathers assets are transferred to a trust this would rule out the son getting sued and putting his own assets at risk.

Any thoughts??
 
As you know you cannot just transfer assets before being sued and having these assets safe.

There are provisions to make these transactions void under both commonwealth law and state law. it doesn't matter who they are transferred too - whether a discretionary trust or the son.

but there are ways to make the transactions stronger and less likely that the transferree is attacked.

Even if the transactions can be voided it may still be a good strategy.

Criminal lawyers generally don't know much about asset protection from a bankruptcy pov (but maybe do from a proceeds of crime pov??).
 
@0 years sounds like an indictable offence- murder or trafficking I reckon. That means with a committal and a drag out of the hearing by forensic evidence requirements that it may not go to sentence for 2 years.
If the transfer was for the purposes if funding the defence etc and not defeating creditors it may work. Mortgage the max out of any real estate anyway.
Just sayin.
 
I have been approached by people over the years in such a position. Unfortunately many of them hear expert tax and legal advice in the gaol from other crims too. Or just clutch at straws. Understandable when you are rock bottom. Its often a half arsed attempt to obstruct the normal legal processes and claims by even their own lawyers as they rack up a HUGE bill. Reminds me of a former NSW pollie

Its a bit like painting a stolen car. Its still got the same engine and VIN and someone is going to ask questions about why the colour changed. You could even be accused of conspiracy to ....

And courts tend not to give convicted or accused parties much or a hearing when they try to argue they sold or gifted chunks of assets for love and affection when others are in line making claims.

As a consequence of my experience with these enquiries I now avoid them like the pox. (Wonder if that gets a *** ?) Its also a very common request from clients undergoing a battle with the ATO. Typically early advice is best. Like before arrest or before the act.

Referring back to Terry its a area that REALLY needs legal advice. And its not cheap. That area of expertise tends to walk Phillip St and bill like they are the only one in town. Many of the acts can be void and even seen by the courts as a attempt to show contempt for process.

I don't often refer such matters but one guy who is a VERY no nonsense guy and honest with costs who has helped in past is Frank - Call 1300653844. Frank is in the Sydney Office. In this area you can fall foul of some sharks. You want someone who KNOWS what to do. Not one who thinks they have some great ideas. He isn't one. And deals with big $ issues.
 
Hi everyone,

Recently I found out a friend of a friend's father (don't know this person) is in jail. He's in jail waiting for his trial but no chance of getting out of jail for at least the next 20 years.

The lawyer for the man in jail has advised the son to put all of his fathers assets under his name just in case victims of crime decide to sue, creditors, etc. The father has agreed to this. As far as I know he has a fair bit of properties.

Currently the son is in the process of transferring all his fathers assets to his own name. Surely this cannot be a good idea? Wouldn't transferring to a trust be a better idea? By transferring the assets to his own name can't the creditors and victim of crimes sue the son and at the same time placing great danger on his own assets as they are also under his own name? (He has several IPs). My thinking is if his fathers assets are transferred to a trust this would rule out the son getting sued and putting his own assets at risk.

Any thoughts??

Why are you trying to help a criminal hide assets so the victims can't get it?

That is my thought .
 
Thanks everyone for the replies. I'll try and answer the questions in this post as I am not sure how to cut and paste individual posts.

Firstly, I don't know this person from a bar of soap so not my intention to help them. I am just curious to see if this is a good move / bad move, and to help my understanding.

Cu@the top - yes it is murder and no chance of getting out I reckon for at least the next 20 years +. He's pleaded guilty so far.

The advice the son received regarding the transfer of assets is to stop victims of crimes "touching" the assets. He's pretty well off and could possibly pay legal costs in cash.

I agree with Terry, I think they will block all transfers. The question is though, say they do allow the transfer could victims of crime sue the son at a later stage?
 
Cu@thetop - that's a good point you make regarding mortgaging the hell out of the property. Could you get a LOC whilst waiting for trial in jail? (and gift the money to your family)
 
Why are you trying to help a criminal hide assets so the victims can't get it?

That is my thought .

and mine...if it is as simple as what is being written, murder, plead guilty....so if it is..pay up, and pay the pain and suffering to the grieving..then go rot..:mad:
 
I agree with Terry, I think they will block all transfers. The question is though, say they do allow the transfer could victims of crime sue the son at a later stage?

They cannot block the transfers. It can be done, but any undermarket transfer could be attacked. They would have no grounds to sue the son. But if the dad were to get a judgment against they could then bankrupt the dad. The trustee in bankruptcy could then investigate the transfers that the bankrupt made leading up to the bankruptcy.

See s37A conveyancing act NSW and ss 120, 121 and 121A of the Bankruptcy Act.
 
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