Declaring Assets

February 15th, 2012 by Questions

My parents recently transferred 2 farming properties to myself and 3 other siblings as their health was failing and they wanted to avoid any complications that could arise from willing the properties to us upon their death. I now have joint ownership of these properties on paper. One of my siblings is managing the farm and earning income from it, but the rest of us have no involvement in the operations, nor do we receive any income from it. Ideally, the sibling that runs the operations will buy the rest of us out at some point, but this is really not feasible for him right now and still a long way off. Although technically I have joint ownership of these properties on paper, they are not worth anything to me right now. If I were to file bankruptcy, how would these assets be affected? I don’t want to negatively impact my siblings stakes in any way as they have nothing to do with my debts.

Posted from: Ontario


One Response to “Declaring Assets”

, A licensed trustee said:

The question you need to answer is this: if the properties were sold today, how much money would you receive? That is the value of the property to you. The fact that they won’t be sold for a number of years isn’t considered.

If you will receive money if the properties are sold today then an amount equal to the amount you are entitled to receive will have to be paid to your trustee if you file for bankruptcy.

This is something you will want to discuss with your trustee in detail BEFORE you decide to file.

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