- 29 -
Turning to the situation before us, there was no evidence
indicating that David gave any consideration in exchange for his
father's assets. We conclude that he did not.
On the date of Sloan’s death, his estate was solvent.8
Thereafter and because David transferred all the assets of the
estate to himself, the estate became insolvent. Thus, regardless
of David’s intent, the transfer of all of Sloan’s assets to David
is deemed a fraudulent conveyance under Nebraska law.9
Additionally, the record herein establishes that David
conveyed the assets of Sloan’s estate with an intent to hinder or
defraud the estate's creditors. Consequently, under Nebraska law,
8 Sloan's estate had assets on Mar. 8, 1987, valued at
$11,606,904. The estate tax deficiency due from the estate was
$5,835,634. A Nebraska State estate tax of $1,232,735 was due,
as well as an inheritance tax of $116,342.32. Also due from the
estate was Sloan's income tax liability of $278,253. The record
reveals no other liabilities owed by Sloan or his estate.
Accordingly, on the date of death the estate was solvent.
9 Pursuant to Neb. Rev. Stat. secs. 30-201 to 30-244
(reissue 1988), a decedent's property passes to his heirs subject
to the claims of his creditors, and a distributee is liable to
return property received (or the value thereof if he no longer
has it) when a creditor's claim has not been paid. Under
Nebraska law, David inherited his father's entire estate. As
statutory executor, David distributed the estate's assets to
himself. David is a distributee under Nebraska law. As a
distributee, he is liable for claims against the estate by
creditors, and if he does not have the property received as
distributee, he is liable to return the value of the property as
of the date of his disposition of the property, and the income
and gain he received. See Neb. Rev. Stat. secs. 30-24,107 and
30-24,118 (reissue 1988).
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