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Huber II Shows Where Proper Drafting Can Prevent Omissions in Operating Agreement From Allowing Upstream Control to Change Downstream Partner Interests

Asset transfer set-asides under the Uniform Fraudulent Transfers Act can create significant collateral consequences, especially when accomplished in the bankruptcy arena and the trustee becomes the new majority owner of an entity who is the major stake-holder in the down-stream entity. This Huber line of cases in Washington has done enormous damage to the case-law on domestic asset protection trusts and their usefulness when strategically mis-used, as Huber did when he formed a DAPT and then filed bankruptcy soon thereafter. That’s what happens when a do-it-yourselfer takes matters into his own hands.

Asset transfer set-asides under the Uniform Fraudulent Transfers Act can create significant collateral consequences, especially when accomplished in the bankruptcy arena and the trustee becomes the new majority owner of an entity who is the major stake-holder in the down-stream entity. This Huber line of cases in Washington has done enormous damage to the case-law on domestic asset protection trusts and their usefulness when strategically mis-used, as Huber did when he formed a DAPT and then filed bankruptcy soon thereafter. That’s what happens when a do-it-yourselfer takes matters into his own hands.

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