Do I have to report an inheritance if I refuse it? 7 Answers as of May 11, 2011Chapter 13 plan confirmed for my dad. Dad died 2 days before confirmation and I had no expectation of inheritance. Now 4 months after confirmation received notice of inheritance to be received in 9 months. Can I refuse it and not report it? I don't want any of the cash. Do I have to report it regardless? Does the estate get it regardless if I refuse it?
Robert Peters, P.A. | Robert L. Peters
Any asset that you have a right to receive within 180 days of your filing is part of the estate. I would suggest that you amend your bankruptcy schedules to disclose the fact that you had a right to am inheritance and choose to disavow it. It could become part of your "liquidation analysis".
Answer Applies to: Florida
Dearbonn Law Offices | Ajibola Oluyemisi Oladapo
As long as the BK is still pending, you only received a confirmation and not a discharge, you have a duty to report it as this inheritance will still be regarded as a part of the bankruptcy estate even if you refuse it.
Answer Applies to: Washington
Benson Law Firm | David Benson
You should speak with your attorney immediately. I would advise caution in deciding not to report an inheritance since the Chapter 13 Trustee could make a case that you have committed fraud by concealing an asset of the bankruptcy estate. However, the nature of the inheritance is important in determining whether it will have an effect on your Chapter 13 plan. If an exemption applies to protect the inheritance, you may not have anything to worry about in disclosing the event.
Answer Applies to: Ohio
Bankruptcy Law office of Bill Rubendall | William M. Rubendall
The rule about reporting inheritances is as follows. If someone dies and their is an inheritance within one hundred and eighty days (six months) it is what is called "property of the bankruptcy estate." The rule would be no different if an inheritance were refused because the estate, not the debtor owns the right for the 180 days and it must be administered as part of the bankruptcy.
Answer Applies to: California
Bankruptcy Law Office of Robert Weed | Robert Weed
It is an asset of the bankruptcy estate if he dies within 180 days of the case being filed. So its the filing date, not confirmation date, that's important. In some states you can disclaim an inheritance, but that depends on state law and you need to talk to a lawyer who is very familiar with that in your state. Is it a lot of money? Depending on why you are in Chapter 13 and how much you are paying, it might not affect your Chapter 13, if its a small amount. Your bankruptcy lawyer should be able to advise you on that. Is it a lot of money? Again, I don't know why you went into Chapter 13, but you have the right to get out of Chapter 13 at any time. Not reporting it, if it was within 180 days of filing and you stay in Chapter 13that would be illegal, fairly easy to trace, and you probably don't want to take even a small chance of going to jail.
Answer Applies to: Virginia