What happens to inheritance after bankruptcy? 14 Answers as of February 29, 2012

I have a lot of debt and have explored filing for Chapter 7 Bankruptcy, but have not filed yet. Now my elderly father is in poor health and may not live more than 3-6 months. I know that if I file for Chapter 7 Bankruptcy, then if she passes within 180 days of my filing, then my inheritance will become part of my bankruptcy estate and used to pay my creditors. Q: I am now reconsidering my filing of Chapter. 7 Bankruptcy. My mother is now reconsidering my inheritance and wants to write me out of the will. What might prevent my siblings from helping me out later if I am written out of the will?

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Janet A. Lawson Bankruptcy Attorney
Janet A. Lawson Bankruptcy Attorney | Janet Lawson
You need to see a lawyer. I have no idea how much money you are talking about and a trust might be the way to go.
Answer Applies to: California
Replied: 2/29/2012
Law Office of Michael Johnson
Law Office of Michael Johnson | Michael Johnson
Nothing. If your parents write you out or put in a trust you may be able to file now.
Answer Applies to: Florida
Replied: 2/28/2012
The Law Offices of Kristy Qiu
The Law Offices of Kristy Qiu | Mengjun Qiu
Unfortunately your siblings don't have any legal obligations of helping you out at all if you're taken out of your mother's will. There's nothing (legally speaking) to enforce their oral agreement of extending a helping hand to you.
Answer Applies to: Florida
Replied: 2/27/2012
Christine Alexis Gay, P.A. | Christine Alexis Gay
All of your assets accept those who are exempted by Florida Statute will become part of Chapter 7 estate. The inheritance will be part of the Bankruptcy estate. If you are not bequeathed anything in the will and you are over 18 (and not a disabled dependant) you will not inherit and have no legal standing to contest the will. General advice is provided herein and not the substitute to obtaining your own legal advice. You should seek independent legal assistance on your matter.
Answer Applies to: Florida
Replied: 2/27/2012
Philip R. Boardman, Attorney at Law
Philip R. Boardman, Attorney at Law | Phil Boardman
You do have a correct understanding of the law. If your siblings want to "help you out" later, there is nothing preventing them from doing so. Remember that in bankruptcy, you would not want to do any "sweet heart deals."
Answer Applies to: Virginia
Replied: 2/27/2012
    Ipson Law Firm, PLLC
    Ipson Law Firm, PLLC | Michael Ipson
    It depends on when you inherit. If you inherit within 180 days after your case is filed then the Bankruptcy Trustee could claim the amount. If it is outside that 180 day period then he could not. Rather than writing you out of the will and then your siblings giving you something, which will look like fraud, you should look into putting the assets in a spendthrift trust which would put the assets beyond the reach of the bankruptcy trustee but allow your relative to use the asset now if they needed to.
    Answer Applies to: Utah
    Replied: 2/27/2012
    Heupel Law
    Heupel Law | Kevin Heupel
    If your mother's health is failing, then taking you out of the will might be a good idea. Your siblings could then "gift" you up to $10,000 per year without running afoul of any bankruptcy laws.
    Answer Applies to: Colorado
    Replied: 2/27/2012
    Diefer Law Group, P.C.
    Diefer Law Group, P.C. | Abel Fernandez
    Nothing prevents your siblings from helping you out later. They can do what they want with their money.
    Answer Applies to: California
    Replied: 2/27/2012
    The Law Office of Darren Aronow, PC
    The Law Office of Darren Aronow, PC | Darren Aronow
    If you are out of the will, then there is nothing you can legally do to force your siblings to give you any of that inheritance.
    Answer Applies to: New York
    Replied: 2/27/2012
    Carballo Law Offices
    Carballo Law Offices | Tony E. Carballo
    You understand the law pretty well. Gifts after filing for bankruptcy Chapter 7 do not have to be reported to the trustee because that is not estate property. That 180-day rule applies to inheritance, life insurance and marital settlements only. You might be able to get around it by having your parents do a living trust instead of leaving you the money by will. There are some decisions that say that money from the trust is not an inheritance for bankrutpcy purposes. You need to consult with an attorney about this possible loophole as it is extremely dangerous and you need to know all the risks. If you depend on a gift from your siblings that is also dangeous but that depends on your relationship with them and it is a matter of trust. It also depends on the amount involved and type of property that will be left by your parents and much more that requires that an attorney advise you properly. Filing a Chapter 13 and converting to a Chapter 7 after six months if your father still alive might also be something you might want to explore with an experienced attorney. You should pay a fee for that kind of advice as those free consultations usually does not involve research time by an attorney. This is bankrutpcy planning which is legal and smart thing to do.
    Answer Applies to: California
    Replied: 2/27/2012
    Indianapolis Bankruptcy Law Office of Eric C. Lewis
    Indianapolis Bankruptcy Law Office of Eric C. Lewis | Eric Lewis
    As long as you don't have a legal expectation to receive money from an inheritance there's no problem.
    Answer Applies to: Indiana
    Replied: 2/27/2012
    Yahima Suarez, A Law Firm, PL | YAHIMA SUAREZ
    If you are not on the will, then you will receive no part of the inheritance. There will be no legal action possible against your siblings to do something they are not legally required to do. If they, by their good heart want to give you something out of their inheritance and respect your parents' wishes, they may, but they are not required to do so.
    Answer Applies to: Florida
    Replied: 2/27/2012
    Debt Relief Law Center | Roger J. Bus
    If you do not receive an inheritance after your case is filed, there is nothing to report to the Chapter 7 Trustee. Your siblings are free to give you whatever they would like on a voluntary basis after you file Chapter 7- if they decide to do that.
    Answer Applies to: Michigan
    Replied: 2/27/2012
    The Schreiber Law Firm
    The Schreiber Law Firm | Jeffrey D. Schreiber
    The fact that they have no obligation to help you out if you are not an heir, except from the goodness of their hearts.
    Answer Applies to: California
    Replied: 2/27/2012
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