Category Archives: Bankruptcy: Probate and Estate Planning

bankruptcy: probate and estate planning

Florida Exemptions Case: Revocable Trust and “Wage” Exemption

A recent case restates the points of some earlier decisions but is still important to review.  In re John Joseph Im aka Exceptional Urgent Care Center , 2013 Bankr Lexis 3088 (Bankr M.D. FL  2013 (Judge Glenn)  addressed the homestead exemption of property held in a revocable trust and the wage exemption from a bonus from a corporation owned by the debtor. As for the homestead exemption, Judge Glenn recognized that a debtor was still entitled to the homestead exemption when the property is owned by a revocable trust set up by the debtor.  This follows other decisions which disapproved of one older decision not allowing this exemption.  The twist in the present case was that Judge Glenn used this rationale to find that the debtor was receiving the benefit of the Florida homestead exemption so the debtor could not exercise the wildcard exemption for the additional $4,000 personal property…
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Life Insurance Policy and Bankruptcy: Beneficiary Change

For those who want to consider issues of rights to life insurance when a debtor files bankruptcy, see In re Maudie Meyers, 2012 Bankr Lexis 5318(Bankr. W. D. N.C.  Nov 14, 2012). Consider a debtor, James Meyers,  who has a term insurance policy.  The named beneficiary is his grandmother, Maudie Meyers.  James Meyers files bankruptcy in early 2009. He does not list the policy in his bankruptcy.  During his bankruptcy, James Meyers changes the beneficiary to Mr. Wallace, a creditor.   Grandma files her own bankruptcy in early 2010.  But 145 dies later James Meyer commits suicide.  Who has the right to receive the insurance proceeds, Mr. Wallace or the bankruptcy estate of grandma? (The case also has issues regarding rights of reinstatement of lapsed policy). This case has some complicated issues, but the case is intriguing and serves as a caution.   The court held that only the bankruptcy trustee in the James Meyers bankruptcy case…
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Bare Legal Title Loses Again: Real Estate Case

There have been several very recent cases by different bankruptcy judges in the Southern District of Florida where debtors have lost on the claim of bare legal Continue reading

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