Expert: Terry Leeders - 1/28/2009

Question
Ok, we live in Kansas and my wife's Grandmother passed in July of 07 just 4 weeks after her grandfather. My wife was never sent a letter from her mother(executor of the estate) stating she was getting an inheritance.Her mother just verbally told her and her siblings there probably would be a decent inheritance. In December, she filed for chapter 7 bankruptcy and she told them she would probably get an inheritance and just didn't know when because of the grandparents passing away so close together. Meanwhile her bankruptcy was discharged in March and its now Jan. of '09 and she finally figured out she will get her inheritance sometime after the taxes are officially done on everything which will be feb, mar, or april. Does she have any obligation at this point to tell the court trustee about the money since he has left the case open since he knew she was getting an inheritance? Also, Since she never officially received a letter stating their was an inheritance can she actually deny the inheritance so that it will go to her lineage(daughter)? Any help would be appreciated greatly. Please answer quickly as were running out of time?

Answer
Yes. If the person had passed before the case was filed, the inheritance was an asset of the bankruptcy estate.  You should notify the trustee and your attorney about the inheritance.  The fact that it is yours is the issue, regardless of what the executor of the will/estate told you.