No Disciplinary Violation For Lawyer That Assisted Client in Sheltering Assets From Creditors.

The defendant, an Iowa attorney, represented an Iowa client with a net worth of $4 million who was charged with murder.  Within days of the charge, the defendant began drafting real estate documents transferring the accused's real estate into revocable trusts and to other persons outright.  The accused shortly thereafter informed defendant that they had found a buyer for a significant amount of land the accused owned.  The buyer was an irrevocable trust that the defendant claimed he did not draft.  The irrevocable trust named as trustee a distant cousin of the accused that resided in Tennessee and listed as an address a P.O. Box in California (facts which the court did not disclose, but were revealed at the underlying trial court action in this case).  The trust contained language acknowledging a writ of attachment in the pending lawsuit against the accused.  The defendant drafted a memorandum of contract of sale of the land to the trust.  The accused was ultimately convicted of voluntary manslaughter and a later civil trial resulted in a judgment against the accused/convicted of $5.7 million.  The decedent's widow filed a disciplinary complaint against the defendant for transferring assets to the irrevocable trust to defraud creditors.  The Grievance Commission of the Iowa Bar publicly reprimanded the defendant.  On appeal, the Court reversed and dismissed the complaint on the basis that it was not obvious to the defendant that the conveyances were fraudulent.  The Court reached this conclusion in spite of the extremely unusual nature of the trust where the trustee was an out-of-state individual and the trust address was listed as a P.O. Box in California.  The Court was persuaded that the defendant could have reasonably believed that the reason for the trust's creation was to consolidate the accused's property under "one tent" to allow the accused's wife to more easily manage farming operations.  Iowa Supreme Court Attorney Discipline Board v. Ouderkirk, No. 13-1124, 2014 Iowa Sup. LEXIS 33 (Iowa Sup. Ct. Mar. 28, 2014).