More than four years ago you engaged in asset protection planning in which you transferred title of your assets from your name to the name of another family member or legal entity. Just recently, one of your judgment creditors discovers the transfers. Is it too late for the creditor to sue for fraudulent transfer?
The question concerns the four year statute of limitation on fraudulent transfer actions. Does the four year time period begin when the debtor transfers the assets, long before he is threatened with a lawsuit, or does the time run from when a creditor first discovers the transfers? In most cases, a creditor does not know about any transfers a debtor has made until after the creditor has a judgment and is able to conduct discovery in aid of execution.
A Florida court considered the issue in a case last year. The court stated that in determing claims under the Fraudulent Transfer act the statute of limitations begins at the moment the alleged transfer occurs.