Question re: inheritance

[dustinc]

If I inherit money within 180 days after filing, can I use my exemptions to cover it. I have about $8k of unused homestead exemption I could use. Thanks.

[dustinc]

Anyone know the answer to this? Thanks.

[justbroke]

If you think you're going to inherit money, you can cover the "anticipated" inheritance by claiming it as exempt on Schedule C. Make absolutely sure that your State's statute covers cash and inheritances and there's precedence for this. What I mean is... some exemptions have exclusions for certain amounts or type of property. Just be sure that you can actually exempt the amount.

[dustinc]

I've already filed and received my discharge. Can I go back and amend the schedules and claim it as exempt now? I have 60 more days left out of my 180 and may inherit funds any day now.

[justbroke]

I've already filed and received my discharge. Can I go back and amend the schedules and claim it as exempt now? I have 60 more days left out of my 180 and may inherit funds any day now.

Umm... did you file with an attorney? If so, I'd defer to him/her. Since you "became entitled" to the inheritance within the 180 days, you are actually required to report it. However, if your case is closed, this would cost $260 in filing fees alone. So, I don't know what the best advice is.

[dustinc]

I filed myself. I've reading but can't find an answer to this question.

[justbroke]

I filed myself. I've reading but can't find an answer to this question.

Hopefully I just answered it.

Basically, anything you are entitled to, or become entitled to, before the 180 days from filing, is property of the Estate. I would first make sure that you have adequate exemptions to cover this. Personally I'm not suggesting that you do, but you may want to contact the Trustee and ask what to do. Opening the case would cost you money you probably don't want to spend. If the Trustee re-opens the case, then you could file your amended Schedule C (claim of exemptions).

[dustinc]

Not that I'm thinking about doing this but, how would the Trustee even find out that I received an inheritance. It's so small that it won't need to be reported to the IRS. My case is closed, so no chance of getting audited? I don't understand.

[justbroke]

They wouldn't necessarily find out. This is one of those "honor" system things. It's that you don't want to get caught later because the impact can be severe.