Bankr. No.:
00-30094
Chapter:
7
Date of Decision:
August 14, 2001
Issue:
Whether a certain annuity, on which several payments remained on the petition date, is excluded from the estate or whether Debtors may declare exempt the payments from the annuity?
Ruling:
The annuity benefits were not excluded from property of the estate under 11 U.S.C. § 541(c)(2) because the annuity was not a "trust" as required by § 541(c)(2). However, under S.D.C.L. § 58-12-4, Debtors could declare exempt a portion of the remaining annuity payments. The amount they could declare exempt was calculated by computing the number of months from the petition date to the last annuity payment date and multiplying it by the $250. Debtors could also request an additional exemption allowance based on need under § 58-12-9. A separate, evidentiary hearing on that issue was required.
Full Bankruptcy Court Decision:
