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The facts before us establish that Richard’s transfers of
his ownership interests in both the residence acreage and the
farm acreage are to be treated as constructively fraudulent under
Maine law vis-a-vis Richard’s outstanding 1995 and 1996 Federal
income taxes.
Richard’s 1995 and 1996 Federal income tax liabilities arose
as of the due date of the tax returns relating thereto, long
before Richard in 1998 made the transfers at issue herein.
Richard made the transfers in September of 1998, after
respondent’s revenue officer in April of 1998 had contacted
Richard and made inquiry as to Richard’s unpaid 1993 and 1994 tax
liabilities and as to Richard’s unfiled Federal income tax
returns for 1995 and 1996.
In exchange for his one-half interests therein, Richard did
not receive anywhere near the fair market value of the farm
acreage and the residence acreage, and Richard clearly was made
insolvent as a result of the transfers.
As of September of 1998, the total fair market value of the
farm acreage was $176,000 (as explained infra pp. 22-24), and the
fair market value of Richard’s one-half interest therein was
$88,000. For Richard’s and Marilou’s September 1998 transfers of
their interests in the farm acreage to Carrie, Tracy, and
Deborah, consideration was received of only $45,892, $30,000 of
which was paid in cash to Marilou for Marilou’s interest in the
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