Wills, Estates, etc. - Please help!


G

Geppy

If anyone could offer some educated advice I'd certainly appreciate it.

I just had my Bankruptcy hearing in the State of California. When asked by
the trustee whether or not I was the Beneficiary of any wills or estates I
answered No.

After leaving the hearing I later realized that that MAY not be entirely the
case. (Although I certainly didn't consciously lie.)

Some background: 5 years ago my sister was killed. My Mother was the sole
beneficiary of her estate which at the time was basically nothing. 6 months
later, my mother also passed away. She also died with no assets to speak of.
There is currently a lawsuit pending against my sisters employer for
wrongful death. I am NOT the beneficiary of my sisters estate but I am a
1/15th beneficiary of my mothers estate which at the moment is absolutely
ZERO. I believe, although I am not certain, that if the lawsuit filed by my
sisters estate is successful any money received could potentially funnel
down into my mothers estate.

My question is this: What should I do now? Should I contact the trustee and
explain this situation or is that just asking for trouble?

If I do nothing, what are the chances that this could ever come back to
haunt me?
 
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J

Joe

I wouldnt ask the trustee, I'd ask my lawyer. You might be able to
answer no truthfully if there is no chance for the inheritance to
happen within 180 days, but I'd ask your lawyer about that too. And
maybe not. I seem to recall the trustee asking me if I expected to
inherit anything within 180 days.
 
T

Thoth

Geppy said:
If anyone could offer some educated advice I'd certainly appreciate it.

I just had my Bankruptcy hearing in the State of California. When asked by
the trustee whether or not I was the Beneficiary of any wills or estates I
answered No.

After leaving the hearing I later realized that that MAY not be entirely
the case. (Although I certainly didn't consciously lie.)

Some background: 5 years ago my sister was killed. My Mother was the sole
beneficiary of her estate which at the time was basically nothing. 6
months later, my mother also passed away. She also died with no assets to
speak of. There is currently a lawsuit pending against my sisters employer
for wrongful death. I am NOT the beneficiary of my sisters estate but I am
a 1/15th beneficiary of my mothers estate which at the moment is
absolutely ZERO. I believe, although I am not certain, that if the lawsuit
filed by my sisters estate is successful any money received could
potentially funnel down into my mothers estate.

My question is this: What should I do now? Should I contact the trustee
and explain this situation or is that just asking for trouble?

If I do nothing, what are the chances that this could ever come back to
haunt me?
You should contact your attorney to ask the same questions, but I think the
best thing to do is amend the papers you originally filed to disclose this
asset. (An amendment would also notify the trustee.) The probability of
this haunting you in the future is low, but the penalties are too great to
ignore.
 
G

Geppy

Thoth said:
news:N%%zd.10901$RH4.3019@newsread1.news.pas.earthlink.net...
You should contact your attorney to ask the same questions, but I think
the best thing to do is amend the papers you originally filed to disclose
this asset. (An amendment would also notify the trustee.) The
probability of this haunting you in the future is low, but the penalties
are too great to ignore.
The problem with doing that is that there really is no "asset" to speak of.
Any funds coming my way are purely hypothetical at this point. I don't want
to hold up my Bankruptcy based on pure conjecture over what might or might
not happen at some point in the distant future.

I'm certain too that my attorney will want additional funds to file any such
amendment and I just simply don't have them.

Does anyone have any more input? I'd appreciate it!
 
S

SRS

Subject: Re: Wills, Estates, etc. - Please help!
From: "Geppy" <Geppy@noneofyourbeeswax.com>
Newsgroups: alt.bankruptcy




The problem with doing that is that there really is no "asset" to
speak of. Any funds coming my way are purely hypothetical at this
point. I don't want to hold up my Bankruptcy based on pure conjecture
over what might or might not happen at some point in the distant
future.

I'm certain too that my attorney will want additional funds to file
any such amendment and I just simply don't have them.

Does anyone have any more input? I'd appreciate it!
Yes. CALL YOUR LAWYER. The risks involved in concealing this asset
(however contingent, however unliquidated) are too great. You filed
Bankruptcy to discharge your debts, right? If this is found out, you could
end up owing all that money all over again, plus many dollars more. Not
worth the risk...

You can do the math. Around here, I'm guessing that amendment to Schedules
B and C might take 1/4 hour and cost maybe $100. If you conceal an asset
and get caught, take that bottom number off Summary of Schedules and figure
on paying _that_ instead. Which is preferable?

The Trustee might make some inquiries with the lawyers handling the
wrongful death case, looking into the value of your potential inheritance.
If it's 1/15th of something, it's surely not a whole lot, and you might be
able to exempt it and be on with your life.

If the Trustee, other creditors or the Court finds out (and you'd be
_amazed_ how often they do...), you are in a _world_ of hurt.

S
(NOT a lawyer, assistant to a Trustee, and I see _lots_ of things)
 
T

Thoth

Geppy said:
The problem with doing that is that there really is no "asset" to speak
of. Any funds coming my way are purely hypothetical at this point. I don't
want to hold up my Bankruptcy based on pure conjecture over what might or
might not happen at some point in the distant future.

I'm certain too that my attorney will want additional funds to file any
such amendment and I just simply don't have them.

Does anyone have any more input? I'd appreciate it!
An amendment like this should be less than an hour of your attorney's time
and will not hold up your discharge.

If you don't disclose now and you eventually inherit money, do you plan on
disclosing then?
 
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G

Geppy

Are you certain that this won't delay my discharge? I had the impression
that this could hold up my bankruptcy until the resolution of this lawsuit.

Also, how much of any of my POTENTIAL inheritance is protected from my
creditors?

Thanks for your input everyone!



Thoth said:
An amendment like this should be less than an hour of your attorney's time
and will not hold up your discharge.

If you don't disclose now and you eventually inherit money, do you plan on
disclosing then?






Are you certain that it won't hold up my discharge? I had the impression
that this could put my entire bankruptcy on hold pending the result of this
lawsuit.
 
T

Thoth

Geppy said:
Are you certain that this won't delay my discharge? I had the impression
that this could hold up my bankruptcy until the resolution of this
lawsuit.

Also, how much of any of my POTENTIAL inheritance is protected from my
creditors?
The portion of the inheritance that can be exempted from liquidation depends
upon the other property you owned at the time of the filing. If your
potential inheritance is valued greater than the allowed exemption the
trustee will send out a notice for creditors to submit a proof of claim.
The discharge will go through as scheduled, but when you take under the
will/lawsuit you will turn the unexempt portion over to the trustee and s/he
will make the distribution to the creditors. If the proceeds are totally
exempt you won't have to turn anything over, and if the unexempt amount is
enough to pay your debts in full you'll keep the balance.
 
G

Geppy

Thoth said:
news:0NkAd.11438$RH4.9913@newsread1.news.pas.earthlink.net...
The portion of the inheritance that can be exempted from liquidation
depends upon the other property you owned at the time of the filing. If
your potential inheritance is valued greater than the allowed exemption
the trustee will send out a notice for creditors to submit a proof of
claim. The discharge will go through as scheduled, but when you take under
the will/lawsuit you will turn the unexempt portion over to the trustee
and s/he will make the distribution to the creditors. If the proceeds are
totally exempt you won't have to turn anything over, and if the unexempt
amount is enough to pay your debts in full you'll keep the balance.
I _think_ I understand.

I basically have NO property to speak of though. Not even a vehicle. I think
I've heard the figure $18,000 bandied about as being the amount that would
be exempt from seizure. Do I have that correctly?

The other thing is, I had originally heard that my discharge would go
through about a month and a half after the Trustee hearing. Will that still
be the case if I notify them of this POTENTIAL asset? The impression I was
getting was that my bankruptcy would not be discharged until AFTER the
pending lawsuit was settled which could be YEARS from now.

On a similar note, does the 10 year time limit for the Bankruptcy being
listed on my credit Reports begin from the date I FILED for bankruptcy or is
it from the date of discharge?

If it's from the date of discharge, and that gets held up for several years
due to the pending lawsuit I am doomed to have it listed on my TRW for 15
years or longer which is one more reason why I'm not too eager to report
this lawsuit to the Court.

Thanks again for any info!
 
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J

Joe

I wouldnt ask the trustee, I'd ask my lawyer. You might be able to
answer no truthfully if there is no chance for the inheritance to
happen within 180 days, but I'd ask your lawyer about that too. And
maybe not. I seem to recall the trustee asking me if I expected to
inherit anything within 180 days though.
 

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