District Court Declares Trust was used to Evade Creditors…….
District Court declares a Trust was used to Evade Creditors and permits Garfield & Hecht, P.C. client to collect from assets of the trust
In a case of first impression in Colorado, District Judge Russell Granger ruled that a Garfield & Hecht client could collect a debt directly from the assets of a Texas spendthrift trust which he ruled was used by the debtor to evade creditors. The evidence showed that the debtor, after suffering financial reverses, transferred his business assets into a Texas spendthrift trust that had been set up for his benefit by the debtor’s parents. Investigation and discovery in the case involved a detailed analysis of the debtor and trust’s bank and tax records as well as a review of interlocking relationships between a number of different entities through which the debtor had conducted business. Garfield & Hecht attorney Robert Kendig represented the Plaintiff through discovery and trial of the case.