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Frank and Katherine transferred their interest, except for a
life-estate, in the Longwood property to Larry and Ronnie for
nominal consideration, and in 1992 when Frank transferred his
interests in a Rolls Royce and a Lamborghini to Larry for no
consideration. Katherine herself testified that by June 14,
1995, she and Frank had given away all of their assets except for
the life estate and $300 to $500 maintained in a bank account.
Applying the Florida statutory provisions to the transfers
at issue, we conclude that, under either the pre-1988 or post-
1987 law, Frank’s and Katherine’s transfers to Larry, Ronnie, and
Sylvia constitute fraudulent conveyances. The lack of
consideration for the transfers, their close family relationship,
Frank and Katherine’s retention of possession of the Longwood
property, the transfer of essentially all of Frank
and Katherine’s estates, and their substantial indebtedness to
respondent establish fraudulent intent.36
In Florida, existing creditors have the benefit of a
presumption of fraudulent intent where the conveyance is
voluntary and there is a close relationship between the
transferor and the transferee. See Hagaman v. Commissioner, 100
T.C. at 188. The presumption is warranted in the instant cases.
36 For post-1987 transfers, the lack of consideration,
insolvency, and preexisting tax liabilities also would render the
transfers fraudulent conveyances under Fla. Stat. sec. 726.106
(1988). See also Advest, Inc. v. Rader, 743 F. Supp. 851, 855
(S.D. Fla. 1990).
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