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Terri Gives Her Son a Birthday Gift of $20,000, the Entire

Question 5

Multiple Choice

Terri gives her son a birthday gift of $20,000, the entire contents of her savings account. The next day, Terri files for bankruptcy. What, if anything, may happen to the gift to her son?


A) Nothing. Gifts can never be undone.
B) The court may reduce the amount of the gift to cover half of the debts owed.
C) Terri would go to jail.
D) The transfer would be undone if it is proven that Terri's intent was to defraud creditors.

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