Missouri statute for inheritance

[dhmissouri]

Hello again-

You all were so thoughtful and helpful in helping me through my question last week about an unexpected inheritance from my father's life insurance policy. My attorney and I are still trying to wade through the legalities of it all since there apparently is no clear beneficiary and the company wants to pay the check to the estate of my father. However, the question becomes whether or not I, as the only heir, would be entitled to keep the money in the absence of any debts of my father, or would I have to give it up to the trustee. In reading the Missouri statutes for exemptions this is what I continue to come across.

http://www.legalconsumer.com/bankruptcy/ExemptionCitationDetail.php?CitationID=1117

Proceeds not liable for debts.
377.090. The money or other benefit, charity, relief or aid to be paid, provided or rendered by any corporation authorized to do business under sections 377.010 to 377.190, shall not be liable to attachment or other process, and shall not be seized, taken, appropriated or applied by any legal or equitable process, nor by operation of law, to pay any debt or liability of a policy or certificate holder, or any beneficiary named in a policy or certificate.

Seems pretty cut and dried to me that it would indicate that I would get to keep it. In addition, I'm finding this:

http://bankruptcy-law.freeadvice.com/bankruptcy-law/missouri-bankruptcy-exemptions.htm

Which seems to indicate that all life insurance proceeds are exempt.

The attorney is doing some checking to discern whether this means that it's all exempt for me as the inheritor or whether it would all be exempt from any creditors my father may have, which I'm pretty sure is zero but you never know.

Am I correct in my thinking that this statute clearly states that I can inherit and exempt all $18,000 in the policy?

[tobee43]

Missouri Revised Statutes
Chapter 377
Assessment Plan and Stipulated Premium Plan Life Insurance
Section 377.090

sounds good to me!!

let me ask you, did you have on your state's petition the question asking you if you expected an inhert. within 180 of the filing of the date of the petition???

[dhmissouri]

We did have that question and we very truthfully answered no, that we did not expect to inherit anything. We filed on 06/23/10, my father passed away on 07/27/10, and our 341 meeting was on 08/06/10. At that time the trustee allowed me to keep and exempt the $2600 that was in his checking account and the $1400 that his truck was worth in order to pay the final expenses at the funeral home which I did. I made sure I wrote a check to cover it so there's no discrepancy.

Anyway, I am my father's sole legal heir. However, he and I have been estranged for a number of years. I had every reason in the world to believe that he had changed the life insurance beneficiary to name his ex-girlfriend, a friend, or someone random. He had some issues and had cut his ties with myself, his siblings, etc. so really had no family that he would have named.

Now the insurance company has determined that the change of beneficiary forms on file are not valid for some reason and want to pay the claim to his estate. Which is fine, I don't think he had any debts that would claim against it, but that means that after the probate time runs out I would be the one getting the money. Which is where the question lies about my being able to inherit and exempt the money.

Glad to see I'm not the only one reading that statute that way. My attorney seems concerned that for some reason it wouldn't all be exempt. However, that concern might lie with the fact that I'm not actually the named beneficiary on the policy, simply the only legal heir for probate purposes.

[tobee43]

Glad to see I'm not the only one reading that statute that way. My attorney seems concerned that for some reason it wouldn't all be exempt. However, that concern might lie with the fact that I'm not actually the named beneficiary on the policy, simply the only legal heir for probate purposes.

there may also be another legal argument involved here...at the time of the signing of the petition you were truthful with your answer...as i pointed out with your last post, at the time of your signing...since you were truthful and everything is supposed to be applicable to the signing date?? or is it???...i have heard both.

in a chapter 13, i can see how the trustee would go after it. in a 7....isn't it after the "fact"??

that's like saying ok...i went to my 341.....got my discharged and order of no assets no distributions... and, just got a call and i just got hired at a new job making 4.2 million dollars a year...do you have to report that??

[dhmissouri]

As I understand it since he died within 180 days of filing our chapter 7 then yes, we have to report it. I spoke with the insurance company just now and they are adamant about paying out to the estate and not directly to me. I also spoke with my attorney who is looking into the statutes I posted for some clarification. He and I both recognize that this will have to go through small estate probate. However, he keeps saying that he believes that the money that will then come to me will go to the trustee but I disagree based on the above named statutes so he's doing a little more digging and I've told him to hold off on opening the estate in probate until I'm certain of what will happen to that money. He was able to find a Missouri statute that shows that the will made during my parents marriage was revoked by divorce so I'm sure my mother can't file a claim to the money while it's in probate and I'm not sure what other kinds of claims may come up since it will have to be published in the paper. The attorney seems to think that the majority of the money will revert to me and then to the trustee in our chapter 7 but I'm really hoping that somehow this will all be able to be exempted and I really think that statute should do the trick unless I'm reading it incorrectly. As I understand it based on those statutes, if I inherited actual tangible property like land, vehicles, etc. then the trustee could take those and sell them as assets but life insurance proceeds are exempt. Thoughts?

[tobee43]

where does this 18k but you as far as where it would stand in the chapter 7??? how much does it effect your average...or does it, since it's a one time payout amount...

and, if your atty is correct about the trustee's position, shoot, if the probate courts are falling behind it could be another year before the money even gets distributed. then what?? are they going to keep your case open all that time...?? i would think so.

i have seen probate courts hold estates up for up to 3 years depending on their nature. this situation is most likely not complexed...but i might seek the advised on just one more atty...just to be safe.