Legal Question in Bankruptcy in California

My Grandmother has recently learned that her husband has accumulated over 300K worth of debt against their mortgage. He has taken very ill and been unable to maintain work and ultimately the payments, as such they have decided to file bankruptcy. I have been assisting her with a small personal business she maintains, without compensation, as she is in her 80's and her husband (also in his 80�s) has been unable to assist since his illness. As they are filing bankruptcy and are limited to a small allowable amount of personal wealth/property she wants to give me what is left of this business (no real estate is involved it is a mobile business). We are unsure what her gifting rights are or how to proceed. Can she give this to me legally without me being affected by her bankruptcy or her suffering any legal/financial repercussions? If so what forms/documentation would best suit this transaction?


Asked on 8/21/09, 5:16 pm

1 Answer from Attorneys
Robert F. Cohen Law Office of Robert F. Cohen

Without seeing the actual figures, I wouldn't venture to give you specific advice. Generally it's best to leave property or assets to a person in a will or through a living trust. If money is transferred a short time before a bankruptcy, it's considered a preference and the bankruptcy trustee could force the recipient to pay it back to the bankruptcy estate to pay creditors.

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Answered on 8/21/09, 5:30 pm


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