Beneficiary Questioin

[cciolino]

My husband and I are filing BK 13 in about three months as we are waiting for some of my income to drop off, I am in Real Estate sales. My grandma passed away last week and I am on a life ins. policy to recieve half with my sister. Once I recieve my check can I sign it over to my sister to avoid a deposit in my account?? I don't think this benefit is reported to the state or IRS as it is not part of any probate.

From what I understand if I collect it before I file in 3 months it will count as part of my average 6 months of income. We don't want to have to wait another 6 months to file as the creditors are after us. The policy is not a large amount but enough to be unrealistic to use for a six month average income.

Any thoughts about my situation??

[wooisme]

well one thing I do know is that you can't LIE about this. They even ask you about stuff like this on the questionaire..........you can keep an inheritance, you have to pay for it though , meaning whatever it is that you get, you can add it into your plan as income divided by the number of months your in the plan........for instance in order for us to keep refunds we can keep up to $3000 a year because we added it into plan to keep it. the same thing with my husban'd bonus check with is $8k you keep it but it gets added in as income so you can keep it, if not you have to turn it over.

I would not lie about this though because you are under penalty of purjury and if you don't you could go to jail. so i guess the question is, how badly do you want it......even signing it over to your sister....i don't know if that can work.

maybe someone else on here can help

[wooisme]

oh i meant to say this as well: my mother actually changed her WILL leaving me completely out of the WILL due to the trustee getting his hands on it. I have 4 more years to go on my plan and the way it's set up my brother gets an extra share. then an agreement was drawn up between my brother and mother that that part of the extra share goes into a bank account in my brother's name stipulating that it's for me and that it's in trust until i'm a certain age. and there's nothing the trustee or anyone can do about that. it's her money and her will and she can do what she pleases with it. the way it is now i wouldn't get it until after the plan ends regardless if she died tommorrow or 8 years from now.

[$$only4ever]

Don't think that you can hide anything from the trustee. I don't know how much you are getting, but no amount of $$ is worth getting into trouble with the trustee. Remember, they are the federal government.

I am currently in a Chapter 13. My mom passed away 3 months ago. I am also receiving insurance money which I know I will have to turn over. It beats dismissal and jail time, lol

[wooisme]

yeah like i was saying it's very very hard to hide things........if you want to keep it you can talk to your lawyer, they can add it in , your payment may be alittle higher but at least you could keep it

[lrprn]

Once I recieve my check can I sign it over to my sister to avoid a deposit in my account?? I don't think this benefit is reported to the state or IRS as it is not part of any probate.

This is hiding a cash asset from your trustee by giving it to an insider. That's fraud. If you get caught, the trustee can take the insurance money AND dismiss your case. It's up to you if you want to throw the dice and take the chance you won't get caught. If your share is less than $1000, you might slide under the trustee's radar. But if your share is over $1000 - all bets are off.

From what I understand if I collect it before I file in 3 months it will count as part of my average 6 months of income.

Yes, if you receive the money in the six months before you file, it does count in your six months back income calculation.