Inheritance from Class Action Lawsuit

[inspector]

My question involves bankruptcy in the state of: Texas.
My wife and I filed Ch. 13 in Oct. 2010. Her mother passed in March 2010. About 6 yrs. ago, my mother-in-law enrolled into a Class Action Lawsuit involving the Hormone Replacement Therapy drug Premarin/Prempro. Because of her passing, my wife has since taken over representing her mother.
The lawsuit has now been settled, but, no payment has been received nor the amount is not known as yet.
My question is: How much can the Trustee take?

[Mr. Knowitall]

By the time your wife receives her inheritance it will be well past 180 days of filing - it already is well past that period - so the inheritance won't be automatically treated as part of her estate. In a Chapter 7 bankruptcy that would end the story. In Chapter 13 the trustee may try to lay claim to the inheritance as property of the estate, 11 USC §1306(a)(1), or as excess funds that should be contributed to the repayment plan. I expect that the trustee may be influenced by the amount of the settlement.

[inspector]

From my on-line research about the HRT, I have found that the average pay to each woman is $150,000. My wife has to split that with 3 siblings. If indeed that amount is correct, then, each will receive $37,500. I also found an inheritance can be paid to the Unsecured-Not Filed creditors. Am I right? Or, don't they just write off the debt?
By the way. I sure do appreciate your response.

[despritfreya]

By the time your wife receives her inheritance it will be well past 180 days of filing - it already is well past that period - so the inheritance won't be automatically treated as part of her estate. In a Chapter 7 bankruptcy that would end the story. In Chapter 13 the trustee may try to lay claim to the inheritance as property of the estate, 11 USC §1306(a)(1), or as excess funds that should be contributed to the repayment plan. I expect that the trustee may be influenced by the amount of the settlement.

With all due respect I need to correct this post.

1. The timing of the receipt of an inheritance is not relevant as it relates to what is or is not property of the estate under 541. If a debtor becomes entitled to an inheritance within the 180 day window that is enough - it is an asset. A will speaks upon death and the moment the testator dies one's rights are solidified. If the testator dies within 180 days it does not matter when the inheritance is paid. In some cases it could take years, especially if there is a will contest (or, as in one case I handled, a stubborn trustee who wanted my client to pay for the probate - think not). But the asset leaped into existence upon the death of the testator - not when the beneficiary receives it.

2. In a Chapter 13 ALL after acquired property is property of the estate therefore, unless exempt, it must be accounted for, for the benefit of creditors.

Des.