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 exemption.

The second issue was the debtor’s attempt to shelter $92,000 in a bank account which came from bonuses from a corporation that he had set up and controlled.   Not surprisingly, the trustee prevailed contesting the claimed exemption.

 

 



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