Ok, I have a friend whos grandparents are getting ready to do a chapter 7. Poor people - at there age... Anyways, they have life ins policies (wholelife) that are quite old, BUT need them for when something happens to either one of them for funeral costs, burial etc. Now there attorney told them that the trustee may take them and cash in the whole life policies.
Now:
How are the people suppose to pay for funeral costs and burial when there time comes, they are in there late 70's if the trustee takes there polocies?
Secondly, if the trustee take the policies will that show as income for them?
Lastly, there attorney said that the trustee has no way of knowing how many policies they have, unless they put it on the petition. Is that correct?
Can't they check somewhere to see what amounts and how many plolicies they have?
Thanks
Now:
How are the people suppose to pay for funeral costs and burial when there time comes, they are in there late 70's if the trustee takes there polocies?
Secondly, if the trustee take the policies will that show as income for them?
Lastly, there attorney said that the trustee has no way of knowing how many policies they have, unless they put it on the petition. Is that correct?
Can't they check somewhere to see what amounts and how many plolicies they have?
Thanks
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