Me, My Wife & Her Inheritance- What Now?

[backontrackOH]

OK, here is our situation. My wife has received one beneficiary check so far in the amount of a little over $5000. If I understand what will happen when I file an individual (just me) Chapter 7, the $5000 would be added to my income over the last 6 months for the means test, whether I am under or over median. The problem is she has an appointment Monday to finalize her status as the executor of her father's will AND to remove a large sum of money from the credit union to pay remaining bills and be divided among her siblings, her share being at least $15K. I am pretty sure this would be added to my 6 month income as well. And, she is expected to receive a couple other beneficiary checks in the coming weeks (or months), amount unknown, again to be divided equally with her brothers and sisters.

I would be lying if I didn't admit to wanting to protect and keep any money she receives as an inheritance. We would like to invest it in separate accounts for each of the kids. The only thing we NEED to prevent is OUR creditors from receiving the insurance benefits that are supposed to be divided up between my wife AND HER SIBLINGS. I just don't know what to do. Should I hurry up and file my Chapter 7 before she signs the executor paperwork and takes possession of the money? Should I/we try and hold out until 6 months pass after the final beneficiary payment? What a mess this has become. Please help.

[oldbaddebts]

I would strongly suggest seeking legal counsel on this one. The situation is very specific in nature, and may require someone knowing the "personality" of your local district and trustee. Try a couple of free consultations for the most accurate answers.

[BassBoy]

Basically, any monies or items received before Ch.7 BK become property of the estate. The same applies to any potential windfalls after you file (I think up to your BK closing). You will be aksed if you will be receiving any windfalls.

I agree that seeking the advice of an attorney is best.

[JollyGG]

Just to clerify - your wife will not be filing with you?

I think that this is one of those questions that we can speculate on but that you really need a lawyers advice on. Talk to 3-4 about your situation and see what they say.

[genseeker]

My understanding of the income is it only includes the previous 6 WHOLE months. So if you were able to file before the end of November, then the income would be from May - Oct. If your wife is not filing, then anything she inherits should not be considered an asset of yours.

My sister was executor of my dad's will. She had a judgment and the bank tried to seize the funds for the account my dad had previously. The bank just added her name & "as executor". My sister went to court against them for placing a hold on the account and she had to show proof (as in the will) that she was the executor of our dad's will. This was in NC, but it should be similar in every state.

OTOH, your wife could withdraw as executor and whomever was named next would become executor. A brother was originally the executor of our dad's will but it stressed him too much so he filed some kind of paper at the courthouse and my sister became the executor because she was named in the will to replace him if he didn't want to be executor.