QUESTION
Can I claim a property that was willed to me in my Bankruptcy record even if the owner is still alive?
Asked on Feb 17th, 2013 on Bankruptcy - New York
More details to this question:
If I am in someone's will to inherit their house or land, but they are currently still alive and may not even die for another 25 years, do I need to claim this in my Bankruptcy Schedule B?
12 ANSWERS
William Rhymer
Generally not. However, if you file a case and the person dies within 180 days of the filing of a Chapter 7 (or the conclusion of a Chapter 13 case) the property would be part of the case.
Answered on Feb 20th, 2013 at 2:12 PM
Estate Planning Attorney serving Wilmington, DE
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Reger Rizzo & Darnall, LLP
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No, that property is not yours.
Answered on Feb 20th, 2013 at 2:12 PM
Based on the information provided, you do not need to claim anything that you do not own or is not in your possession. You may be the person who will inherit the property but you do not own it right now.
Answered on Feb 19th, 2013 at 11:06 PM
Bankruptcy Law Attorney serving Austin, TX
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Law Office of Susan G. Taylor
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No, you need to list only interests in the estate of decedent in your chapter 7 bankruptcy.
Answered on Feb 19th, 2013 at 10:33 PM
No, in bankruptcy you only claim property you will inherit if the person leaving you the property has already died. Why? Because the person has the right to change their Will at any time. Say a prayer that your benefactor continues to live, because if the death occurs within 6 months of filing bankruptcy, you may lose this inheritance.
Answered on Feb 19th, 2013 at 1:38 PM
General Practice Attorney serving Crystal Lake, IL
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Bruning & Associates, P.C.
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Section 541 of title 11 of the US Code defines what is part of the bankruptcy estate. Because you will not have a legal or equitable interest in to-be-inherited property as of the time of filing, property listed in another's will generally will not be a part of the bankruptcy estate. There is, however, an exception. Section 541(a)(5) provides that property you inherit within 180 days of filing the petition (not 180 days after being granted your discharge) is part of the bankruptcy estate. If the person dies within that time frame, it would be worth if to consult a lawyer.
Answered on Feb 19th, 2013 at 1:38 PM
No you do not, but if they do pass within 6 months of your filing, you must notify your trustee.
Answered on Feb 19th, 2013 at 1:38 PM
Complex Litigation Attorney serving Costa Mesa, CA
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Thomas Vogele & Associates, APC
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No. Such a gift is a mere expectancy given the facts stated in your question. You only need to disclose testamentary gifts or beneficial interests in a trust that you anticipate will become your property within 180 of filing your bankruptcy case.
Answered on Feb 19th, 2013 at 1:33 PM
Bankruptcy & Debt Attorney serving Syracuse, NY
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Theodore Lyons Araujo
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No. If the person is still alive it is not yet your property and is not part of the bankruptcy estate.
Answered on Feb 19th, 2013 at 1:31 PM
No. They could change their Will at any time.
Answered on Feb 19th, 2013 at 1:31 PM
Bankruptcy Law Attorney serving Livingston, NJ
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Law Office of Stuart M. Nachbar, P.C.
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Yes, it has to be listed, but it would be as an inheritance with the person still alive.
Answered on Feb 19th, 2013 at 1:31 PM