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Commissioner, 93 T.C. 475, 479-480 (1989), affd. without
published opinion 933 F.2d 1014 (9th Cir. 1991). State law
generally determines the extent of a transferee's liability for
the debts of a transferor. Commissioner v. Stern, supra at 45;
Gumm v. Commissioner, supra. We apply Florida law in deciding
whether petitioners are liable as transferees under section 6901
because all of the transfers occurred there. Fibel v.
Commissioner, 44 T.C. 647, 657 (1965).
Under Florida law, one of the ways a transferee may be held
liable for the debts of a transferor is if the transferor
fraudulently conveys assets to the transferee; i.e., the transfer
is made with actual or constructive intent to delay, hinder, or
defraud the transferor's creditors and is made without adequate
consideration. Fla. Stat. Ann. sec. 726.01 (West 1969);2 Hagaman
2Fla. Stat. Ann. sec. 726.01 (West 1969) provides:
Every * * * gift, grant, * * * conveyance, [or]
transfer * * * and of goods and chattels, * * * by
writing or otherwise, * * * which shall at any time
hereafter be had, made or executed, contrived or
devised of fraud, covin, collusion or guile, to the
end, purpose or intent to delay, hinder or defraud
creditors or others of their just and lawful actions,
suits, debts, accounts, damages, demands, penalties or
forfeitures, shall be from henceforth as against the
person or persons * * * his, her or their successors,
executors, administrators and assigns, and every one of
them so intended to be delayed, hindered or defrauded,
(continued...)
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