What is the Uniform Fraudulent Transfer Act?

The Uniform Fraudulent Transfer Act (UFTA) is a law in the state of Massachusetts that prevents people from transferring property in order to avoid creditors or debtors. It was enacted in the 1980s and it is enforced by the court system. The UFTA has the goal of protecting those who are owed money and those who are in possession of valuable property. Under the UFTA, a “fraudulent transfer” is defined as one made with the intention of defrauding creditors. Examples of fraudulent transfers include selling or transferring valuable property for much less than it is worth, or transferring property with the intention of avoiding a legal obligation. If a creditor discovers that a fraudulent transfer was made, they can file a lawsuit and seek damages from the person who transferred the property. The UFTA also provides legal protection to those who are considering transferring property. If a person makes a transfer and it turns out to be fraudulent, they may be immune from prosecution as long as they acted in good faith. This means that they were unaware that the transfer was fraudulent. By providing individuals with legal protection and ensuring that transfers are legitimate, the UFTA encourages fairness in property transactions and discourages fraudulent behavior in Massachusetts.

Related FAQs

What is a lease?
How is property legally defined?
What is necessary to establish an equitable easement?
What is a covenant of warranty?
What is the Uniform Fraudulent Transfer Act?
What are real estate taxes?
What is a pre-existing non-conforming use?
What is the rule against perpetuities?
What is an option to purchase?
What is a title insurance policy?

What is the Uniform Fraudulent Transfer Act?

Related FAQs

Related Blog Posts