Section 20.13 Actual Fraud

• Library: Estate Administration 2014 Supp

1. (§20.13) Actual Fraud

Missouri recognizes two types of fraud:

1. Actual

2. Constructive

Actual fraud requires a finding of each of the following elements:

· Misrepresentation of a fact

· The perpetrator’s knowledge of its falsity and intent to deceive

· Another’s reliance on the misrepresentation

· Resulting damage

Mullen v. G.M.A.C., 919 S.W.2d 7, 8 (Mo. App. W.D. 1996); Green Acres Enters., Inc. v. Nitsche, 636 S.W.2d 149, 153 (Mo. App. W.D. 1982).

Actual fraud is commonly alleged in actions asserting a transfer in fraud of marital rights. Missouri common law has long recognized a cause of action for transfers by a spouse in fraud of marital rights. In re Estate of Lowe, 519 S.W.2d 373, 376 (Mo. App. S.D. 1975). A transfer in fraud of marital rights requires:

· a transfer without consideration;

· the decedent’s continuing control of the asset;

· disproportion between the value of the gift and the total estate; and

· concealment of the

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