TRUSTS-RESULTING-CONVEYANCE TO VOLUNTARY GRANTEE TO DEFRAUD CREDITORS

Authors

Abstract

The plaintiff and the defendant, husband and wife, were tenants by the entireties in certain real estate. Fearing an action by a supposed creditor against the husband, they conveyed without consideration to a third person who subsequently conveyed to the wife. This was done on the advice of counsel. There was an oral understanding between the plaintiff and the defendant at the time of this conveyance that the husband's interest should be reconveyed in the same roundabout manner after any danger of suit had passed. Due to wise investments on the part of the wife this property became very valuable. The parties later separated and the husband sought to charge the wife as a trustee for himself or to have his wife and himself declared tenants by the entireties in equity. Held, that as the husband's purpose was to defraud creditors this will bar the imposition of a trust in his favor. Faris v. Faris et al., 250 Mich. 659.

Recommended Citation

TRUSTS-RESULTING-CONVEYANCE TO VOLUNTARY GRANTEE TO DEFRAUD CREDITORS, 29 Mich. L. Rev. 797 (1931).
Available at: https://repository.law.umich.edu/mlr/vol29/iss6/39