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Possible to legally refuse inheritence during bankruptcy?

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    #1

    Possible to legally refuse inheritence during bankruptcy?

    After filing for Chapter 7, is it possible for me to legally refuse the acceptance of a life insurance inheritence (due to the death of a deceased family member, my Father), when his death and subsequent inheritence has occurred within the 180 days of my filing (which requires any inheritence received to be turned over the court to pay creditors)? If that is possible, it would be returned to the estate and divided equally among the other listed heirs, my three sisters.

    Also if possible, what would be the necessary legal process to accomplish same?

    Thanks in advance for any answers.
    Tags: None
    #2
    Very good question. It would seem to me that you don't have to accept anything you don't want. However the law may view it as an asset even though you don't want it, but because you have access to it. I think this is attorney territory.

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      #3
      The good news is that a famous case from 1995 of man named Drye in Arkansas "disclaimed" his inheritance and won in court. He has a right to not take his inheritance and if he doesn't take it he doesn't own it therefore it cannot be used to pay his back taxes within that 180 day period.
      The bad news is it went all the way to the Supreme Court so it must have cost a fortune to defend. Fortuantely, he owed several hundred thousand dollars so it was worth it. But maybe his expensive defense will help you. You will find lots online searching under Drye, disclaim, inheritance.

      Comment

        #4
        Yes you can legally refuse the inheritance, but the Trustee can still go after it by petitioning the Court...... and most of them will.....(and sad part, get it)...

        If you hold a winning lottery ticket, wait till you case is closed, then collect it.........the trustee can still 'GO AFTER IT'.... Called the long arm of the Court.......

        Any income that is not exempt - the trustee can take!!!
        There are some states that do not allow the Trustee to take certain death benefits.... If you are in one of those states you will know it...
        Minny

        "It's amazing the paths that our feet sometimes follow in life".

        My suggestions are from "personal experience" and research only. Do not consider this as legal advice. Each bankruptcy case is different.

        Comment

          #5
          You can legally refuse an inheritance. The question does lie whether or not the Trustee will go for it. I know of a person that was optioned to inherit some commercial land -- he turned it DOWN! It contained an abandoned rubber tube factory and tons of pollution! Hell, let the trustee have it!
          Filed: October 13th, 2005
          341: April 11th, 2006 (Took 6 mos.)
          Discharged: May 31st, 2006
          Closed: May 31st, 2006

          _________________________________________
          Chapter 7

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