Legal Question in Wills and Trusts in New Jersey

Bankruptcy and Inheritance

I was in the process of filing Chapter 7 bankruptcy. My mother passed away and I am entitled to 10% of the estate. Me and my 2 brothers are trying to keep the house and buy the rest of the family out. 2 of us were planning on not taking anything from the estate and giving my other brother credit for what we would have received reducing the sales price of the house. The house would be in his name and we would pay him rent. Can this be done and am I allowed not to take the inheritance so when I file bankruptcy I can legally show I am not receiving anything.


Asked on 7/17/07, 4:40 pm

1 Answer from Attorneys
Walter LeVine Walter D. LeVine, Esq.

Re: Bankruptcy and Inheritance

You can file a Disclaimer with the Surrogate, which allows you to give up your inheritance rights. However, for bankruptcy purposes, this might be considered a transfer in fraud of creditors, so they might be able to follow the assets disclaimed. This should be discussed with a bankruptcy expert. Call me if you have any questions, as there may be other routes to go.

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Answered on 7/18/07, 5:11 pm


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