Update: Connecticut Agrees with New York Precedent That Tuition Payments by Insolvent Parents May Be Fraudulent Transfers
By Michael L. Moskowitz and and Melissa A. Guseynov
We previously reported on whether an insolvent parent's school tuition payments for an adult child could constitute constructively fraudulent transfers. As conveyed in our recent article, the Eastern District of New York denied a trustee’s request to recover tuition payments from three universities. See Pergament v. Brooklyn Law School, Case No. 18-2204 (E.D.N.Y. Nov. 27, 2018). Such attempts by trustees to recover tuition payments from higher education institutions made by parents on their children’s behalf is a relevant and rapidly developing issue with substantial consequences for parents, students and universities.
