On a motion for payment out of funds paid into court representing sale proceeds of a cottage interest, the court held that a transfer into joint tenancy with the movant daughter contravened the Fraudulent Conveyances Act because it hindered existing child support creditors.
Applying the badges of fraud analysis in a non-arm's length transfer for no consideration, the court found the presumption of fraudulent intent was not rebutted.
The movant was therefore not entitled to the funds as surviving joint tenant, though her funeral expense claim was recognized as an ordinary creditor claim without priority.
The funds and accrued interest, after priority payment of one creditor's full indemnity costs, were ordered distributed pro rata among the three accepted creditors.
