By Michael L. Moskowitz and Melissa A. Guseynov

We previously reported on whether insolvent parents’ 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 colleges. See Pergament v. Brooklyn Law School, Case No. 18-2204 (E.D.N.Y. Nov. 27, 2018).  Now the First Circuit has become the first circuit court to rule on this relevant and rapidly emerging issue.