Harvey M. Pert, Transferee - Page 32

                                       - 32 -                                         

          Stat. Ann. sec. 726.103(1) (West 1988).  Insolvency can be                  
          measured at the time of or immediately after the transfer.  Fla.            
          Stat. Ann. sec. 726.106(1) (West 1988).  Each distribution by an            
          estate is one of a series toward the distribution of the entire             
          estate.  O'Sullivan v. Commissioner, T.C. Memo. 1994-17 (heirs to           
          decedent who died owing income taxes received distributions from            
          estate as transferees under the Cal. Civ. Code sec. 3439.05 (West           
          1993 Supp.), which is identical to Fla. Stat. Ann. section                  
          726.106(1) (West 1988)); Ginsberg v. Commissioner, T.C. Memo.               
          1965-36.  The liabilities of an estate include unpaid Federal               
          taxes, penalties, and interest on the date of the transfer in               
          computing whether an estate is solvent.  Leach v. Commissioner,             
          21 T.C. 70, 75 (1953); LeFay v. Commissioner, T.C. Memo. 1982-              
          420.                                                                        
               When Mr. Riffe's estate transferred its assets to Mrs. Pert,           
          it became insolvent because it had no assets and had a debt to              
          respondent.                                                                 
                    e.   Petitioners' Other Contentions                               
               Petitioners contend that respondent must prove that the                
          transferor had fraudulent intent.  We disagree.  A creditor need            
          not prove that the transferor had fraudulent intent to establish            
          that a conveyance is per se fraudulent under Fla. Stat. Ann.                
          section 726.106(1) (West 1988).  Snellgrove v. Fogazzi, 616 So.             







Page:  Previous  22  23  24  25  26  27  28  29  30  31  32  33  34  35  36  37  38  39  40  41  Next

Last modified: May 25, 2011