Martinek Grain & Bins, Inc. v. Bulldog Farms, Inc., 366 S.W.3d 800 (Tex. App.—Dallas 2012, no pet. h.).


Funding with Homestead


The court held that the transfer of property to a trust which was the settlors’ undisputed homestead could not be set aside as a fraudulent conveyance because the homestead is generally exempt under nonbankruptcy law from the claims of creditors.


Moral:  Transfers to a trust of a homestead or other exempt property are unlikely to be set aside as fraudulent transfers.