Legal Question in Bankruptcy in Florida

Ch. 7 filed - Remainder Interest Problem

I filed a voluntary ch 7. My sister has a life estate (homestead) and my brother and I have remainder interests. My attorney said it's value was $3,000. Now trustee says $12,000. and is ready to file Adversary. What determines the value of a remainder interest? Is there a market for the sale of remainder interests? I do not have $12,000 so will the trustee simply take the property?

Thank you very much.


Asked on 12/22/04, 8:34 pm

2 Answers from Attorneys
Alexander M. Rosenfeld Rosenfeld & Stein, P.A.

Re: Ch. 7 filed - Remainder Interest Problem

You have an attorney. follow his advice or retain new counsel.

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Answered on 12/23/04, 8:45 am
Robert DeMarco DeMarco-Mitchell, PLLC

Re: Ch. 7 filed - Remainder Interest Problem

While not an expert in the area, perhaps I can still provide some guidance. An attorney that practices estate planning will provide a better answer. Nonethless, you should check the following Fifth Circuit authority (Magnin v. Com�r., 184 F.3d 1074 (9th Cir. 1999)). This case and others are holding that the value is determined based upon the actuarial value of the remainder estate. Previously, the rule was the value of the fee simple estate regardless of the intervening life estate. Again, while the issue rears its head in bankruptcy from time to time an estate planning lawyer in Florida will likely provide you with a more detailed and accurate answer.

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Answered on 12/29/04, 8:10 pm


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