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re: Property held for another
Usually this fact pattern is pretty simple. The son who lives with
parents only owns a portion of the home. That portion is all that
is included in his bankruptcy.
Do the same homework you do on all homes in a rising market. If the
property has only 50k equity for his share (his percentage interest
is very important(4 people on title, no precentages listed, probably
each own 1/4)) it will be exempt. If the property has more than
$50k equity for his share, he may have to buy out the trustee's
interest in the property.
Only a husband and wife cancel out each others exemptions. Son gets
a homestead, mom and dad get a separate homestead, other sibling
gets a separate homestead.
You can find many cases with this analysis.
dennis
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