Bankruptcy and wills

[special111]

Well as some know my husband and I are looking to file bankruptcy by months end. However my grand mom mentioned finally wanted to get her will signed soon as well. Well in that will I am standing to be her will executor and will inherit her house along with my sister. I am wondering if I go ahead and sign for her as planned how will this effect my case if she passes anytime soon. Not because she is sick but there is no way of knowing when its our time.

[LadyInTheRed]

I am not sure what you mean by "sign for her". If she names you as executor and/or beneficiary of her will, you don't sign anything. Might she actually be creating a trust and naming you as current trustee? If she is creating a trust, she should talk to her attorney about drafting the trust to protect your inheritance from your creditors. Whether that can be done depends on the laws in your state.

If you are trustee of a trust or executor of your grandmother's will after her death, but not a beneficiary, the assets of the trust or estate would not be at jeopardy. You would be a fiduciary managing other people's assets. So, the fact that she appoints you executor or trustee is irrelevant to your bankruptcy.

If you are named a beneficiary and your grandmother dies within 6 months of filing BK, then any part of your share of her estate that you cannot exempt becomes part of the bankruptcy estate, unless there is a trust that contains sufficient provisions to protect your share.