charsetndows-1252
I'm usually not an outspoken defender of Trustees, but "whim" seems a little harsh.
This section, like 704.115(e) for IRA accounts, calls for an actuarial calculation of need, and unless the recent widow is either employed or very employable, $250K goes very quickly since no one can live on $1000 per month; and the calculation is whether it is necessary for the rest of her life.
That is a calculation that, at least in my experience, Trustees will eyeball and quickly give up the fight.
Obviously different if it were a $5million policy, or she is a neurosurgeon (who is dogging it for $1000 per month).
Jason
Jason Wallach
jwallach@gladstonemichel.com
On May 1, 2014, at 5:01 PM, Hale Andrew Antico wrote:
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> Recent widow has over $250,000 in life insurance proceeds. Her income is about $1000/month. Am I right that no matter how this is exempted, it's subject "to the extent reasonably necessary for the support of the judgment debtor," opening it up to the whims of whichever trustee and/or judge she gets in Chapter 7?
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> 704.100(c) and 703.140(b)(11)C) and/or 703.140(b)(8) all seem to be subject to limitation. Am I missing something?
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> And since it does seem to be limited by this clause (or $12,860), what is your experience in how trustees will treat "reasonably necessary," in real practical terms?
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> I'm leaning toward her avoiding bankruptcy and just settling the debts (subject to potential tax consequences), but am now curious on an academic level, and because the listserv could use a new topic.
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> Hale
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charsetndows-1252
I'm usually not an outspoken defender of Trustees, but "whim" seems a little harsh. This section, like 704.115(e) for IRA accounts, calls for an actuarial calculation of need, and unless the recent widow is either employed or very employable, $250K goes very quickly since no one can live on $1000 per month; and the calculation is whether it is necessary for the rest of her life.That is a calculation that, at least in my experience, Trustees will eyeball and quickly give up the fight. Obviously different if it were a $5million policy, or she is a neurosurgeon (who is dogging it for $1000 per month).Jason
Jason Wallach
The post was migrated from Yahoo.