My Florida Bankruptcy and my Unexpected Inheritance
Many times debtors are in bankruptcy and experience an unexpected death. Following the death, the debtor may become concerned about any inheritance or distributions made to the debtor on behalf of the estate.
The Trustee (in a Chapter 7) may consider inheritance distributions six months before and six months after the filing date. Therefore, if the debtor can hold off on receiving distributions for six months after the file date, then he or she should do so. Furthermore, Florida has certain exemptions that are available to protect other distributions such as life insurance proceeds. Whether or not 401(k) proceeds should or should not be protected depends on if the 401(k) rolled into a an inherited IRA.
It is still up in the air whether or not Florida law will protect such an IRA but it is has a better chance of being protected than if the proceeds went straight to the beneficiary. You should contact an attorney should you have any questions or concerns.
If you have questions about Florida Divorces or Bankruptcy Law contact a Florida Attorney
Greg Gilbert
Keith Maynard
