In a bankruptcy motion, the trustee sought to set aside a bankrupt's transfers of his interest in a residential property to his children for nominal consideration.
The court rejected the assertion that the property had originally been acquired in trust for the children, found the transfers were non-arm's length transfers at undervalue within the statutory review period, and held that they were made with intent to defeat creditors.
Applying the indicia of fraudulent conveyance, the court declared the transfers void against the trustee under s. 96(1)(b) of the Bankruptcy and Insolvency Act.
The trustee's alternative claim for a monetary judgment was denied for lack of valuation evidence, and no costs were awarded.
