Legal Question in Wills and Trusts in California
my son-in-law wants me to send his inheritance to another person because he is in bankruptcy proceedings, and then they will funnel it to him. Can I get in any trouble with the courts if I do this?
2 Answers from Attorneys
You probably already suspect the answer. Because your son-in-law is in bankruptcy, his inheritance belongs to the bankruptcy trustee. He -must- disclose the inheritance to the trustee, who will collect it to pay off his creditors. Your son-in-law would receive the difference minus the trustee's fee. If the decedent had put your son-in-law's share into a spendthrift trust, he might not have faced this reality. Thus, if you were to send his inheritance to another person to funnel it, you would be committing fraud on the trustee and court, possible theft and/or conversion, bankruptcy law crimes, and face severe consequences. It's good that you asked before you jumped into a mess.
As for you son in laws bankruptcy, the inheritance probably belongs to the trustee.
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