Liability for a Client’s Fraudulent TransferLiability for a Client’s Fraudulent Transfer

This past year has been such a dark time for many of us, so it seems appropriate to focus my column on perhaps the most troubling question for asset protection planners—our potential liability for assisting a client in what’s ultimately found to have been a fraudulent transfer.

A Suspicious Request

Let’s start by examining an unpublished 2020 appellate decision out of the Superior Court of Pennsylvania—Schmidt v. Rosin.¹ By way of background, Harry Schmidt was represented by attorney Robert Rosin in various legal matters for a period of more than 50 years. In 2011, Harry was sued, resulting in a relatively modest $400,000 judgment against him in 2015. This judgment became Robert’s problem because of an allegation by Harry that in 2003, Har...