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Protect inheritance in bankruptcy

We own our own business and for the last couple of years (seems like forever) we have been on the edge of bankruptcy. My mother is elderly and has a fairly substantial estate. I'm her only heir and I'm not sure how her estate plan is set up. But I was wondering if there is some way to set it up to protect my inheritance if I have to file bankruptcy. Thanks.

Well, it is tough to

Well, it is tough to completely answer your question without knowing all the details of your situation. Generally, speaking if you file bankruptcy under chapter 7 (of course you may not be eligible for a chapter 7 filing or it may not make sense for you), then your inheritance will be safe from the bankruptcy estate as long as mom lives for more than 180 days after you file. Good luck.
 
Attorney Robert Kovacs
 

Editor's Response

I agree with Attorney Kovacs.  If you are interested in estate planning strategies that your mother might employ, you might want to look into a Spendthrift trust.  The problem with the spendthrift trust is that, as long as the inheritance remains in the trust, you do not control it and must receive money through a trustee selected by your mother. 

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