In re Lary (Ch. 7 Case No.04-54138, Adv. No. 04-05181)

The deceased's Will provided that the debtor could live in the deceased's residence as long as he wanted, then the residence could be sold and divided between the debtor and his sister. The sister filed for Chapter 7 relief. The debtor later conveyed his interest in the residence to his sister. The Court held that the interest the sister received under the Will was property of her bankruptcy estate. The Court held that the debtor's bankruptcy estate could avoid as fraudulent the transfer of his interest to his sister.

Friday, February 10, 2006