What If I Inherit Money During My Minnesota Bankruptcy?

The answer to this is fairly straightforward if you filed a chapter 7 bankruptcy in Minnesota.  You will have to turn over proceeds from an inheritance to the bankruptcy trustee if you receive an inheritance within 6 months of your bankruptcy filing.  If you get this money it is important to let your attorney know about the inheritance and they will let the trustee know about the money.  This is important since if you do not let the trustee know he or she can revoke your bankruptcy discharge.
The answer is not an easy one if you are filing a chapter 13 bankruptcy in Minnesota.  The 8th Circuit cases on the subject do not give a definitive answer regarding what needs to be turned over to the trustee and when.  The best course of action is to let the trustee know about the inheritance and then work from that point.  It seems that the property of the estate should be determined from the date of the filing or the date of the confirmation.  It would also make sense that a limit is put on the amount of time an inheritance would be property of the chapter 13 bankruptcy estate.  The most sensible solution would be to have chapter 13 bankruptcies treated the same way as a chapter 7 bankruptcy for the purpose of an inheritance.  This would allow a clear answer to clients who may inherit money during the 3 to 5 year chapter 13 payment plan.