Inheritance Before Filing?

[Elleoz]

My husband and I have been in the process of filing for BK for over a year now. We have stopped paying on everything except the neccessities (car payment, mortgage, child care, insurance, utilitities, etc).

My grandfather passed away a year ago and I am supposed to inherit @ $10,000 after the house is sold (which should be soon). We have paid the lawyer his fees, but haven't submitted the paperwork to file yet. My question is: Is there any way to protect this money from being taken from the trustee?

It has been a year since he died and I live in SC. My husband and I are probably close to $75,000 in debt at this time. I am hoping that I can find a way to keep all of it since it won't really make a dent in our debt.

Any advice? How long should we wait before we file if it can be protected?

Thanks!

[blessed]

We filed yesterday and our attorney specifically asked if we have received an inheritance, or will we in the next 6 months, OR is someone sick and going to die and leave us money in the next 6 months. I'm not sure how to protect that money, you need to ask your attorney.

Sorry about your Grandfather.

[Apocalypse]

I am fairly certain that you do not need to claim inheritance that happened over a year ago (you INHERIT on the date of death of the benefactor)... HOWEVER, if you receive the disbursement into your bank account, they will see that, because they look back a year on bank statements. If it were me, I would not even TELL The attorney about it, because you ***technically*** inherited a year ago. I would then NOT put the money into a bank account or anywhere that is visible. Leave it in the estate account until AFTER you file. The trustee will ask you IF you are expecting an inheritance, you can truthfully say no, you already DID inherit over a year ago. He does NOT ask if you are expecting disbursements from an inheritance. Don't even tell your attorney tho, because he is required to be truthful on the documents he submits just like you are.

JUST MY OPINION, check you owns state's laws too. GOOD LUCK.

[newbie2]

To not tell your attorney something this important is to me terrible advice. You are paying your attorney to work for you in your best interest. Don't handcuff your attorney by not informing him (or her) about everything. They cannot possible help you if they are blindsided by something (the trustee asking about $10,000 in your account)

[blessed]

I agree, terrible advice. Otherwise WHY would my attorney ask me specifically about this? There might very well be a great solution to this, if you don't tell your attorney you'll not know about it and possibly do something very wrong.

[keepmine]

Don't keep this from your lawyer.
Since you'll receive this money prior to filing it may be possible to spend it down or, put it in an exempt asset like a Roth or traditional IRA.

[Apocalypse]

I do agree not telling your attorney about something is BAD advice. I didn't mean to imply that you should keep something from him... I simply meant that I wouldn't bring up things that are not relevant and cloud the process. Of course if it's something you are uncertain about being relevant, then you should tell him so he can advise you.

The trustee WILL ask you about $10,000 in your account, that's why I said, don't put it in there.

Sorry for being unhelpful