Inheritance During Bankruptcy – Is There Any Privacy

January 27th, 2007 by Questions

I claimed bankruptcy August 25, 2006. My Mother died January 19, 2007. The will named me as one of the beneficiaries in her estate. I am aware from your site that I will need to tell my trustee, and that my name will be replaced on the will with the name of the trustee, and that all monies will be paid to the trustee. I have questions. Firstly my brother-in-law is executor of my mother\’s estate. I would prefer if my whole family who I am basically estranged from, did not know I had declared bankruptcy, however I presume the executor, my brother-in-law, will have to be informed, and once he knows he will be free to tell whoever he wishes. Is this correct? Also, should I be consulting a lawyer as well as telling my trustee? My trustee does seem very trustworthy – I had just noticed a reply to someone else in a similar situation and they had been recommended to consult a lawyer, however they had already waited till they had been discharged, where mine is still in progress, so I can\’t really foresee any need for legal advice. Is this correct? Also, can I be legally forced to attend \’family\’ (estranged family) meetings regarding my late Mother\’s estate by my trustee? She had very little of any monetary value, more sentimental than anything. Thank you in advance.

Questions

One Response to “Inheritance During Bankruptcy – Is There Any Privacy”



, Barton Goth, GCO Inc. Bankruptcy Trustees said:

You are correct to assume that the executor will have to be informed of the bankruptcy and he could potentially tell anyone whom he chooses. You could always contact him in advance and ask him to keep this confidential, but past that there is not a lot that you can do. As for consulting a lawyer, you could always do this, but realistically in this situation I question the value of having a lawyer as the legislation is very clear that any “after-acquired property” (i.e. inheritances) are assets that must come into the bankruptcy estate. As a result you would probably be paying for a services that simply isn’t necessary. As for attendance at meetings, typically all the arrangements will be made by the trustee so normally you could avoid having to attend these types of things.

Please post a follow up comment below:

(Note: comments are reviewed by moderators and then posted after approval. In addition, due to high volume some of the comments might not be posted.)