Legal Definitions - colorable transfer

A colorable transfer is a transfer of property that appears to be authentic but is actually a sham or a pretended transfer. It is a transfer that is made to deceive others and has no real substance.

For example, if a person transfers their property to a family member for a nominal amount of money, but continues to use and control the property as if it were still theirs, it would be considered a colorable transfer. This is because the transfer is not genuine and is only meant to give the appearance of a legitimate transfer.

Another example of a colorable transfer is when a debtor transfers their property to a third party to avoid paying their creditors. This is considered a fraudulent transfer and is not a legitimate transfer of property.

In both examples, the transfer is not a true transfer of property because the transferor still retains control and ownership of the property. It is only a colorable transfer meant to deceive others.