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Serving
Massachusetts Agencies

Trustees and Federal Tax Liens

Trusts and Trustees

Where mother transferred title to son so that son could use the property as collateral for a mortgage on the property with the understanding that the son was to reconvey the property back to the mother upon the completion of the loan transaction, a federal tax lien against the son assessed and recorded after the loan transaction was closed would not affect the title to the property and a reconveyance by the son to the mother thereafter would be free of the federal lien because at the time of the filing of the federal lien the son, as constructive trustee, was already under an obligation to reconvey the title to the mother, the trust having been fully executed and performed, with nothing remaining for the trustee to do, there being no "property" or "a right in property" remaining in the son at the time of the filing of the federal lien.

— U.S. v. Johnson, 200 F.Supp. 589 (1961)