Transfers to Avoid Creditors

If you owe money at the time you sign the title to real estate, your creditors 
can cancel the deed unless it is to a third party who paid fair market value and
 was not aware of the real purpose of the change of title. The creditors can 
file suit to upset the deed within the six year statute of limitations. This is
 a common law real estate principal, often called the Statute of Elizabeth.

The IRS has a code section called “fraudulent conveyance” which like so many of 
their terms is misleading. The conveyance itself is not fraudulent but the intent
 may be improper. This is not a provision in criminal law but simply a section of 
the Internal Revenue Code.

These provisions exist in law and any insinuation by RBC or by anyone else that 
this does not exist would be wrong. If a creditor or the IRS is hounding you, you 
need to be aware of this common law principle, even if RBC does not spell it out
 in great detail. Also many people selling various products may give misleading 
information about the IRS code section.