Is this illegal?

Let’s say someone owes a ton of money to banks and the irs. If they sell all their assets to their son or their best friend for $1.00 so they do not get seized, is that a crime?

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  • 1 month ago
    Favorite Answer

    It is illegal to intentionally dispose of assets for less than market value to avoid creditors. The courts WILL undue such sales.

    In the case of sales to family members, the sale is PRESUMED to be fraudulent until the seller proves otherwise. You may be able to get away with a 10% discount if you actually pay the proceeds to your creditors. You WILL NOT get away with the nominal $1.00.

  • 1 month ago

    Steven F and Steven Weinstein are correct.  In addition, your family who you sold the assets to will also go to prison, with criminal records, for their part in the fraud.  PAY your debts.

    Source(s): Certified Paralegal, with 25+ years' experience.
  • 1 month ago

    Hiding assets can be a crime, and does not actually work, since the ownership transfers are public record.  

  • Scott
    Lv 7
    1 month ago

    Yes, it's called concealment of assets. It's a crime.

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  • 1 month ago

    First, it's fraudulent conveyance.

    Second, it doesn't work.  The assets can still be seized.

  • 1 month ago

    It would depend on if they tried to hide the transaction.  If they were open about  it IRS could follow the money and seize it from the son as the nominee of the taxpayer.  If the person tried to hide everything that would be evasion of payment which can get you five years in prison.

  • Rick
    Lv 6
    1 month ago

    the government has a way around that if you do it, they still get your stuff but not sure if you'll get jail time ....................

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