More Equity Questions- Son's Property

[keepsmiling]

I am HOPING that this is a stupid question..
Can they take ds17's bonds? They were all gifts and I don't think our names are on any of them.
Can they take his bank account with $3000? It's a special Kid's Account but dh's name is on it too, had to be per rules....

[keepsmiling]

Also wondering--- he wants to buy a cheap car... is this allowed? If we buy it for him, value is around 1500, plus my beater is around 1000 ('93 minivan, would really like to replace but not sure that's possible)... insurance is less if it's in our names.. dh has an '04 Ion that we are financing.

[backtoschool]

transferring property to a family member a year before you file bk will result in the trustee going after the family member for the property. So, if you buy your son a used car and give it to him and then file bk, the trustee will go after your son for the car.

If your name is not on the bonds, then the trustee will not be able to take them.

[keepsmiling]

If he buys the car with his money, it's ok then?
Since he'd have to use up his bank account anyway, I guess?
or if I just bought the car and total value is under the exemption amount for both cars? or is that too many cars...

[backtoschool]

I would keep your name completely off of the car or any money used to purchase the car. It will be easier to deal with the trustee that way. Although if the car is exempted the trustee many not go after a fraudulent conveyance, you still might have to fight it as a separate issue that has nothing to do with exemptions, since transfer of property to an family member is not allowed up to one year before filing.

[keepsmiling]

What should he do with the money in his bank account? It's all 100% his. He took out 5K this summer to travel.

[backtoschool]

What should he do with the money in his bank account? It's all 100% his. He took out 5K this summer to travel.

Is your name on the account as a joint owner? If it is, then you need to take the money out of the bank gradually before you file. Your son should then go and open up an account in only his name at another bank. If you are just on the account as a custodial signer and are not a joint owner then you dont have to do anything. You also have the option of exempting half the money with your cash or wild card exemptions if you have them. (if you are a joint owner of the account).

[keepsmiling]

I am pretty sure that I am just a custodial signer. I can't take the money by myself and he must have me along for him to take it.

[backtoschool]

I am pretty sure that I am just a custodial signer. I can't take the money by myself and he must have me along for him to take it.

If you can't take all the money out yourself, then you are just a custodial signer and the account won't be considered an asset by the trustee. You will have to list it in a separate area on your petition though.