death benefit plan, life insurance policy, etc

[tinfoilhat]

I was asked if I was eligible to recieve benefits from a:
Contingent and noncontingent
interests in estate of a decedent,
death benefit plan, life insurance
policy, or trust.

In the next six months. My answer was no.

Well circumstances have changed. My father has been in the ICU since thursday and it's not looking good at all.

He does have some type of policy that gives me $8000 to cover his burial costs, etc. He set this up in April for this reason. And I am the beneficiary I think. My name and SSN is on the paperwork, my sisters is also but not her SSN.

It's very non specific, basically I get $8000 and use it however I want to but I'm going to use it for the right things obviously.

I filed 7/16, had my 341 8/17, was asked the same question by the trustee.

I don't know how to word any of this but it looks like I'm going to be the beneficiary of a death benefit plan.

So does the trustee take it? If it's in my sisters name too does he get half?
Or is there any chance that enough time will pass? I'm not sure my father will be around in a month so I guess that falls in the 6 month time frame.

If this makes no sense sorry.

[mom2three09]

I don't have an answer to your question, but I just wanted to say I'm really sorry about your dad I hope he's able to pull thru.

[backtoschool]

I am so sorry about your father!

I looked up some info on the web (for florida, since that is where your profile says you are from) and this is what I found.

"Section 541 of the Bankruptcy Code lists certain assets that become part of the bankruptcy estate even though the debtor acquires the assets after filing. These include a debtor’s interest in a life insurance policy or other death benefit."

[JustOverBroke]

I was asked if I was eligible to recieve benefits from a:
Contingent and noncontingent
interests in estate of a decedent,
death benefit plan, life insurance
policy, or trust.

In the next six months. My answer was no.

Well circumstances have changed. My father has been in the ICU since thursday and it's not looking good at all.

He does have some type of policy that gives me $8000 to cover his burial costs, etc. He set this up in April for this reason. And I am the beneficiary I think. My name and SSN is on the paperwork, my sisters is also but not her SSN.

It's very non specific, basically I get $8000 and use it however I want to but I'm going to use it for the right things obviously.

I filed 7/16, had my 341 8/17, was asked the same question by the trustee.

I don't know how to word any of this but it looks like I'm going to be the beneficiary of a death benefit plan.

So does the trustee take it? If it's in my sisters name too does he get half?
Or is there any chance that enough time will pass? I'm not sure my father will be around in a month so I guess that falls in the 6 month time frame.

If this makes no sense sorry.

Tinfoilhat,

First of all I'm so sorry about you're Dad,I know what you're going through I lost my mom last year and am still having a hard time with it.

If you're using the money for funeral arrangements $8k doesn't go real far as you will find out.

If you're Dad has no arrangements made and the the money is for that purpose it will be eaten up fast.

My mom had her plot and cremation pre-paid.
The funeral home charged me $3600.00 just to pick her up at the hospice then to the crematory, a small service and then to take her to the cemetery and another $500.00 for a few flowers nothing fancy.
They say an average funeral costs about $6000.00.

So you may have very little left if anything at all.

I hope it doesn't come to this and you're dad gets better.

God Bless you're in my prayers.

[2manybills]

Tin: Sorry to hear about your dad. It is a very difficult time and I hope he pulls through.

We've had my 86 year old MIL in and out of the hospital twice since we filed. She's in assisted living and has caregivers in and out of there now.

I would contact your attorney. Maybe if the funds are used solely for burial and funeral arrangements, there will be some kind of exemption.

Good luck. It's certainly not the kind of thing you want to worry about when you are dealing with an ill parent.

[tinfoilhat]

If you're using the money for funeral arrangements $8k doesn't go real far as you will find out.

If you're Dad has no arrangements made and the the money is for that purpose it will be eaten up fast.

My mother passed away july, 2008. I am aware of the costs.
Thanks for the kind words everyone.

[backtoschool]

If your sister's name is there as beneficiary too, your sister's half of the policy will not go to the trustee.

Again, I am so sorry about your father.

[DeadManCrawling]

Tinfoil,

I am very sorry to hear this. I lost my mother in law a month ago.

I would consider having the insurance company, if it comes to this, wrire the check directly to the funeral home and return any excess after the fact. This takes care of expenses and keeps the money from becoming your asset before things are finalized. This is what our attorney suggested we do, though we ended up not doing so. The money stays as part of your father's estate until bills are paid, which keeps it out of your pocket. This is legally correct as well, and any proceeds you received after funeral expenses would be declared to the BK court.

Again, my deepest sympathy. We wish you and your family the best in this.

Even if you make a mistake somewhere, legally, but have the receipts to prove you buried your father with the money, I don't believe any judge would look unkindly on the transaction.

I do hope that the end result is something other than a funeral.

-dmc

[whipster1]

DMC is correct. That amount will barely cover burial expenses...doubt if much will be left over.

[tinfoilhat]

For whatever it's worth. He passed monday.
Tuesday we had to take care of the arrangements.
He wanted it simple, no viewing, cremation.
We picked out an urn similiar to my mothers.
Total cost was $2800.
They have plots up north and will have services up there when money is available.

So thats approx two weeks in the ICU, 5 days in Hospice.
They don't allow enough time to collect on this death benefit, he has to be cremated within a week.
He had good insurance, he was a 100% disabled Veteran. His insurance pays everything else medical. I called to be sure.

The death benefit insurance lists me as the only benficiary, I talked to them today and they are sending out papers. I get a whopping $580. No surprise, it wasn't well planned. The policy is 5 months old, if it was 2 years it would have paid $8000.

Guess I'll have to run this by my attorney.

Hopefully I get to keep it so me and my siblings have something else to fight over.

[Brittanie55]

So sorry to hear about you dad

[marie]

Condolences on your loss.

I just joined a few minutes ago, but have been reading for the last week or so. I have learned a lot !