The $325,000 loan mishap

Future-Proof: Navigate Threats, Seize Opportunities at ICNY 2018 | Jan 22-26 at the Marriott Marquis, Times Square, New York

James M. MacDonald II loaned Joseph Gayton $325,000, which was not secured by real estate or any other asset. On Feb. 2, 2001, before repaying the debt to MacDonald, Gayton conveyed his joint-tenancy interest in the family home to his wife, Monica, by a quitclaim deed. Before the transfer, Gayton and Monica held title to the home as joint tenants. The quitclaim deed was recorded with the county recorder of deeds on March 15, 2001. Purchase Bob Bruss reports online. MacDonald, as trustee and sole beneficiary of a retirement plan, filed a lawsuit against Gayton on Aug. 7, 2003, for nonpayment of the $325,000 debt. But Gayton died on Nov. 26, 2003, without any assets. On Dec. 22, 2003, the court entered a judgment in favor of MacDonald for $357,140, including unpaid interest against Gayton's estate. On Jan. 16, 2004, MacDonald brought this lawsuit against Gayton's estate and Monica to set aside Gayton's quitclaim deed under the Uniform Fraudulent Transfer Act (UFTA). The court ...