Q: Under a chapter 7 bankruptcy, if I inherit the home I live in via deed transfer, is the home still an exempt asset?
My parents own the home and want to transfer the deed to us as an inheritance rather than gift to avoid gift tax. Could the trustee take our home in that scenario?
A: It doesn't matter how you received ownership of the home. If you own real property and use it as your residence, you can use the available homestead exemption. However, a homestead exemption may not completely protect your property. You should speak to a local bankruptcy attorney to assess your entire situation.
A: If you are already in a chapter7 Bankruptcy, your parents should wait to transfer the inheritance until the discharge is entered. If you have not already filed a chapter 7, you should consult a local bankruptcy attorney before filing.
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