Judgement and inheritance

[Stress2017]

What is the name of your state (only U.S. law)? NJ there is a judgement against a family member for a vehicle that was surrendered 18 yrs ago. If they claim their inheritance will it be taken?

 

[latigo]

What is the name of your state (only U.S. law)? NJ there is a judgment against a family member for a vehicle that was surrendered 18 yrs ago. If they claim their inheritance will it be taken?

It won't be "taken" as such to apply to an "unsatisfied judgment" unless the judgment creditor timely garnishes the personal representative of the estate in which the inheritance is forthcoming.

In which event whether the heir "claims" the inheritance of not would be inconsequential. It would be like any other money owed to or to which the judgment debtor is legally entitled.

(Incidentally, a New Jersey judgment is good for 20 years and can be revived/renewed for an additional 20 years. (N. J. S. A. 2A:14-5)

 

[HRZ]

THe executor is supposed to deliver it. Not that benificiary "claim it ."

OF course if creditor gets wind of new funds, the creditor can step up collection efforts.

SO long as this is a garden variety judgement holder and not federal tax lien and a few other forms of government liens, the intended benificiary could frustrate his or her creditors by a prompt disclaimer of the bequest ...and then it bypasses him or her and goes to next person in line sort of as it you were dead and out of picture ....its a step for,some situations ..but check the details before you jump . ...it may not be right for you.

 

[latigo]

THe executor is supposed to deliver it. Not that benificiary "claim it ."

OF course if creditor gets wind of new funds, the creditor can step up collection efforts.

SO long as this is a garden variety judgement holder and not federal tax lien and a few other forms of government liens, the intended benificiary could frustrate his or her creditors by a prompt disclaimer of the bequest ...and then it bypasses him or her and goes to next person in line sort of as it you were dead and out of picture ....its a step for,some situations ..but check the details before you jump . ...it may not be right for you.

There's a slight flaw in your "disclaimer/frustrate the creditor theory"!

Once the personal representative assigned to administering the estate is served with the notice of garnishment causing a levy on the inheritance or so much of it as needed to satisfy the judgment that representative as is duty bound to honor it and pay the levying officer the proper amount or become personally liable to the judgment creditor.

Assuming for sake of argument that a heir could disclaim an inheritance to defeat the rights of his creditor it would place the heir in an unenviable dilemma. Why?

Because either way its a losing gamble for the heir as once the notice of garnishment is served its too late to renounce. And if he renounces before the garnishment is served he's waived the inheritance and the judgment remains unsatisfied.