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Ch 7 Post Discharge Inheritance
I agree Catherine, what I was commenting on was the idea that Link stated since a probate was waiting to clear there was neither will nor trust.
Margaret Norman, Attorney
111 N. Sepulveda Blvd. #355
Manhattan BEach, Ca. 90266
310-376-7873
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Hi Margaret:
Sometimes trusts are probated to set a deadline to file any claims. Especially if the person who passed is a doctor or has a company that tort claims would be filed against.
Law Office of Catherine Christiansen
________________________________
To: "cdcbaa@yahoogroups.com"
Sent: Friday, July 27, 2012 1:40 PM
Subject: RE: [cdcbaa] Ch 7 Post Discharge Inheritance
There is no income tax on an inheritance. Sometimes the estate whether probate or trust might have a fiduciary tax return due (1041) but that would not be this beneficiary's problem as she is not the personal representative.f the person died without a will.
Margaret Norman, Attny
111 N. Sepulveda Blvd. #355
Manhattan Beach, Ca. 90266
310-376-7873
Fax 310-798-0846
From:cdcbaa@yahoogroups.com [mailto:cdcbaa@yahoogroups.com] On Behalf Of Catherine Christiansen
Sent: Friday, July 27, 2012 12:50 PM
To: cdcbaa@yahoogroups.com
Subject: Re: [cdcbaa] Ch 7 Post Discharge Inheritance
If your client has any non-dischargeable debts, if the inheritance will incur a tax liability, you need to file a proof of claim on behalf of those creditors if they do not file a proof of claim on their own before the cut off date to file claims.
Law Office of Catherine Christiansen
________________________________
The post was migrated from Yahoo.
There is no income tax on an inheritance. Sometimes the estate whether probate or trust might have a fiduciary tax return due (1041) but that would not be this beneficiary's problem as she is not the personal representative. Just for your information a probate is filed if there is a will or if the person died without a will.
Margaret Norman, Attny
111 N. Sepulveda Blvd. #355
Manhattan Beach, Ca. 90266
310-376-7873
Fax 310-798-0846
The post was migrated from Yahoo.
In addition to what Mark says; you need to have a trust attorney review the trust, there may be spendthrift provision that would protect the distribution from the decedents estate.
Best regards
Larry Webb
State Bar of California 229344
Central District California
"A Debt Relief Agency"
Check out my Blog
Larry@webbklaw. com
Law Offices of Larry Webb
484 Mobil Ste 43
Camarillo Ca 93010
P 805.987.1400
F 805.987.2866
C 805.750.2150
The post was migrated from Yahoo.
A will does not avoid probate. It just designates the testator's distribution preferences. Assets in a trust generally avoid the probate process. If assets are actually subject to probate then they are not in trust, but lay folk commonly confuse probate and estate administration. You need to double check because while sec 541(a)(5)(a) applies to probate estates, there is a school of thought that the language of that section does not apply to trust beneficiaries.
Mark Jessee
Sent from my iPhone
On Jul 27, 2012, at 12:20 PM, "Link W. Schrader" wrote:
> The discharge was entered 109 days after the petition date. Ive read 11 USC 541(a)(5) and understand that the inheritance is property of the estate. On Stevens question, I dont recall if it was by will or trust, but as the Debtor reportedly is waiting for probate to clear, I think there was neither will or trust.
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> Ive read the following:
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> Duty to file supplemental schedules re post-petition property: 11 USC plemental schedule filed within 14 days after the debtor becomes aware of the property or within such further time as the court allows. [FRBP 1007(h) (amended eff. 12/1/09)]
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> (1) Duration of duty: In a Chapter 7 case, the duty to file supplemental schedules for 541(a)(5) postpetition acquisitions continues notwithstanding the debtor's discharge and closure of the case. [FRBP 1007(h)]
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> (2) In Chapter 11 cases, the duty continues until entry of an order confirming the Chapter 11 plan. [FRBP 1007(h)]
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> (3) In Chapter 12 and 13 cases, the duty continues until the debtor is discharged. [FRBP 1007(h)]
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> It took a while for the Debtor to know what she would inherit and the amendments were filed 74 days after her mothers death. She wants to know for how long she must be concerned about the trustee coming after her inheritance, which admittedly is a non-exempt asset.
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> Link Schrader, Attorney
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> Law Office of Link W. Schrader
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> Mail: P.O. Box 3723, Tustin, CA 92781
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> Office: 106 W. 4th Street, Suite #308, Santa Ana, CA 92701
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> Office: (714) 542-5922; Mobile/Text: (310) 413-6924
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> San Diego: (619) 952-8342; Fax: (310) 878-4158
>
> www.schrader-law.com
>
> ______________________________________________________________________________________________________
>
> This communication and any files transmitted with it contain information which is confidential and may be privileged and exempt from disclosure under applicable law. It is intended solely for the use of the individual or intended recipient. You are hereby notified that any use, dissemination or copying of this communication is strictly prohibited. If you have received this communication in error, please notify the sender. Thank you for your cooperation.
>
>
>
Peter M. Lively
> Sent: Friday, July 27, 2012 11:45 AM
> To: cdcbaa@yahoogroups.com
> Subject: Re: [cdcbaa] Ch 7 Post Discharge Inheritance
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> Was discharge within 180 days of petition date?
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> See 541(a)(5).
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> To: "cdcbaa@yahoogroups.com"
> Sent: Friday, July 27, 2012 11:42 AM
> Subject: [cdcbaa] Ch 7 Post Discharge Inheritance
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> Chapter 7 Debtors mother dies 8 days after her chapter 7 discharge. Debtor has received about $5,000 so far through inheritance, but expects to receive about $80,000 once probate clears. I filed post-discharge amended Schedules B and C and used the Debtors remaining exemptions to exempt about $20,000.00. The amendments were served on the case trustee via CM/ECF and a hard copy also mailed to the Court and the Office of the U.S. Trustee.
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> Question: If the Debtor does receive $80,000 total then there will be non-exempt assets of $60,000.00. Is there any further notice that needs to be provided, such as when additional funds are actually received, and is there any statute limiting the period in which the trustee could come after these funds? The amended schedules were not served on creditors. What if the Debtor spends the funds before the trustee comes to collect?
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> Thank you,
>
>
>
> Link Schrader, Attorney
>
> Law Office of Link W. Schrader
>
> Mail: P.O. Box 3723, Tustin, CA 92781
>
> Office: 106 W. 4th Street, Suite #308, Santa Ana, CA 92701
>
> Office: (714) 542-5922; Mobile/Text: (310) 413-6924
>
> San Diego: (619) 952-8342; Fax: (310) 878-4158
>
> www.schrader-law.com
>
>
>
>
>
>
>
A will does not avoid probate. It just designates the testator's distribution preferences. Assets in a trust generally avoid the probate process. If assets are actually subject to probate then they are not in trust, but lay folk commonly confuse probate and estate administration. You need to double check because while sec 541(a)(5)(a) applies to probate estates, there is a school of thought that the language of that section does not apply to trust beneficiaries. Mark JesseeSent from my iPhoneOn Jul 27, 2012, at 12:20 PM, "Link W. Schrader" <lschrader@schrader-law.com> wrote:
Duration of duty: In a Chapter 7 case, the duty to file supplemental schedules for 541(a)(5) postpetition acquisitions continues notwithstanding the debtor's discharge and closure of the case. [FRBP 1007(h)] (2) In Chapter 12 and 13 cases, the duty continues until the debtor is discharged. [FRBP 1007(h)] It took a while for the Debtor to know what she would inherit and the amendments were filed 74 days after her mothers death. She wants to know for how long she must be concerned about the trustee coming after her inheritance, which admittedly is a non-exempt asset. Link Schrader, AttorneyLaw Office of Link W. SchraderMail: P.O. Box 3723, Tustin, CA 92781
The post was migrated from Yahoo.
If your client has any non-dischargeable debts, if the inheritance will incur a tax liability, you need to file a proof of claim on behalf of those creditors if they do not file a proof of claim on their own before the cut off date to file claims.
Law Office of Catherine Christiansen
________________________________
To: "cdcbaa@yahoogroups.com"
Sent: Friday, July 27, 2012 12:39 PM
Subject: Re: [cdcbaa] Ch 7 Post Discharge Inheritance
I've had this situation arise in a debtor's case, post-discharge. The trustee will serve a notice to all creditors with a proof of claim deadline.
The post was migrated from Yahoo.
I've had this situation arise in a debtor's case, post-discharge. The trustee will serve a notice to all creditors with a proof of claim deadline.
________________________________
To: "cdcbaa@yahoogroups.com"
Sent: Friday, July 27, 2012 12:20 PM
Subject: RE: [cdcbaa] Ch 7 Post Discharge Inheritance
The discharge was entered 109 days after the petition date. Iroperty of the estate. On Stevens question, I dont recall if it was by will or trust, but as the Debtor reportedly is waiting for probate to clear, I think there was neither will or trust.
Ive read the following:
Duty to file supplemental schedules re post-petition property: 11 USC plemental schedule filed within 14 days after the debtor becomes aware of the property or within such further time as the court allows. [FRBP 1007(h) (amended eff. 12/1/09)]
(1) Duration of duty: In a Chapter 7 case, the duty to file supplemental schedules for 541(a)(5) postpetition acquisitions continues notwithstanding the debtor's discharge and closure of the case. [FRBP 1007(h)]
(2) In Chapter 11 cases, the duty continues until entry of an order confirming the Chapter 11 plan. [FRBP 1007(h)]
(3) In Chapter 12 and 13 cases, the duty continues until the debtor is discharged. [FRBP 1007(h)]
It took a while for the Debtor to know what she would inherit and the amendments were filed 74 days after her mothers death. She wants to know for how long she must be concerned about the trustee coming after her inheritance, which admittedly is a non-exempt asset.
Link Schrader, Attorney
Law Office of Link W. Schrader
Mail: P.O. Box 3723, Tustin, CA 92781
Office: 106 W. 4th Street, Suite #308, Santa Ana, CA 92701
Office: (714) 542-5922; Mobile/Text: (310) 413-6924
San Diego: (619) 952-8342; Fax: (310) 878-4158
www.schrader-law.com
The post was migrated from Yahoo.
Was discharge within 180 days of petition date?
See 541(a)(5).
________________________________
To: "cdcbaa@yahoogroups.com"
Sent: Friday, July 27, 2012 11:42 AM
Subject: [cdcbaa] Ch 7 Post Discharge Inheritance
Chapter 7 Debtors mother dies 8 days after her chapter 7 discharge. Debtor has received about $5,000 so far through inheritance, but expects to receive about $80,000 once probate clears. I filed post-discharge amended Schedules B and C and used the Debtors remaining exemptions to exempt about $20,000.00. The amendments were served on the case trustee via CM/ECF and a hard copy also mailed to the Court and the Office of the U.S. Trustee.
Question: If the Debtor does receive $80,000 total then there will be non-exempt assets of $60,000.00. Is there any further notice that needs to be provided, such as when additional funds are actually received, and is there any statute limiting the period in which the trustee could come after these funds? The amended schedules were not served on creditors. What if the Debtor spends the funds before the trustee comes to collect?
Thank you,
Link Schrader, Attorney
Law Office of Link W. Schrader
Mail: P.O. Box 3723, Tustin, CA 92781
Office: 106 W. 4th Street, Suite #308, Santa Ana, CA 92701
Office: (714) 542-5922; Mobile/Text: (310) 413-6924
San Diego: (619) 952-8342; Fax: (310) 878-4158
www.schrader-law.com
The post was migrated from Yahoo.
Chapter 7 Debtor's mother dies 8 days after her chapter 7 discharge. Debtor has received about $5,000 so far through inheritance, but expects to receive about $80,000 once probate clears. I filed post-discharge amended Schedules B and C and used the Debtor's remaining exemptions to exempt about $20,000.00. The amendments were served on the case trustee via CM/ECF and a hard copy also mailed to the Court and the Office of the U.S. Trustee.
Question: If the Debtor does receive $80,000 total then there will be non-exempt assets of $60,000.00. Is there any further notice that needs to be provided, such as when additional funds are actually received, and is there any statute limiting the period in which the trustee could come after these funds? The amended schedules were not served on creditors. What if the Debtor spends the funds before the trustee comes to collect?
Thank you,
Link Schrader, Attorney
Law Office of Link W. Schrader
Mail: P.O. Box 3723, Tustin, CA 92781
Office: 106 W. 4th Street, Suite #308, Santa Ana, CA 92701
Office: (714) 542-5922; Mobile/Text: (310) 413-6924
San Diego: (619) 952-8342; Fax: (310) 878-4158
www.schrader-law.com
The post was migrated from Yahoo.