Q: I’m the executor and my brother is a beneficiary. I recently discovered that four months after our mother died in 2019,
my brother filed Chapter 13 bankruptcy. The bankruptcy was dismissed in 2020 due to lack of payment and unfiled paperwork. It appears from the bankruptcy paperwork he did file that he did not mention the inheritance (possibly because he didn’t know what the final amount would be). It’s now 2023, and I’m finally ready to distribute the money to the four beneficiaries. Do I need to report his inheritance to anyone? Could I be liable for anything if I distribute the inheritance to him? I’m in Pennsylvania.
As your brother's bankrkuptcy was dismissed, for cause, three years ago and no appeal from that dismissal is pending, you may proceed as if the bankruptcy was never filed (there's a specific Bankruptcy Code section that says that).
For that reason, I recommend that you proceed to execute your duties as Executor, in accordance with the PA probate laws, and make distributions.
It's always helpful to speak to an experienced attorney licensed to practice in your jurisdiction, and I recommend that you do so to ensure that you're in compliance with all applicable laws.
Timothy Denison agrees with this answer
1 user found this answer helpful
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