Please Help!!! Need good advice quick!!!

[Ann]

All,
As luck would have it we were just notified that my husband is the beneficiary of an insurance policy that his father had. He just recently passed away and now we don't know what to do. We just had our 341 meeting that went very well. The money from the policy in question is very small (only $4,000) and is to be divided between him and his 3 siblings. We didn't know this a few days ago at our meeting when we answered no to the question about being a beneficiary. Do we have to give this money to the trustee??? Is it possible to be able to keep this being that it is such a small amount? We absolutely do not want anything to keep us from our discharge. We just cannot believe the luck we are having with this. Please anyone if you know how we should go about this please advise. Just wondering if it can be exempt. This feels like a never ending nightmare. What could possibly go wrong now???

[newbie2]

Call your attorney tomorrow morning. Hopefully you'll be able to exempt it since it is such a small amount.

[nomoneynomore]

Since it is easy money they might make you pay it in, but since it's such a small amount your lawyer might very easily be able to find an exemption for you to keep it. Call your laywer and see what he can do Good luck on keeping it!

[Ann]

Would it be possible to be able to wait out the 6 months to make a claim or would that be considered fraud by waiting? This is so damn confusing.

[newbie2]

Would it be possible to be able to wait out the 6 months to make a claim or would that be considered fraud by waiting? This is so damn confusing.

You became entitled to the money (by the death) within 180 days of filing. You don't have a choice - the attorney and trustee must be notified.

[Ann]

newbie2, I see you are from Michigan too. My lawyer exempted $49,000 for us. Would this $4000 put us "over"??? Waiting to hear back from the lawyer.

[newbie2]

newbie2, I see you are from Michigan too. My lawyer exempted $49,000 for us. Would this $4000 put us "over"??? Waiting to hear back from the lawyer.

I thought your portion was only $1000? I don't know about the exemption limits off the top of my head but you could check and find out if $50,000 puts you over any limit. (We filed 4 years ago, I don't remember what they were)

[Ann]

Yes, his portion is only $1000 but he is the beneficiary of the entire $4000. I will just see what the lawyer says.

[Ann]

All, we went to our attorney yesterday and after all the worry this week we were told that we had plenty of room to exempt the $4000!!!! Needless to say we were quite relieved. We now wait patiently for the next 52 days to get our discharge. I really hope there will be no more drama for us! Happy 4th of July to all you good people here!!!