Jones v. Mullen (In re Jones)
- Summarized by Kevin Baum , Windels Marx Lane & Mittendorf, LLP
- 12 years 3 weeks ago
- Citation:
- Jones v. Mullen (In re Jones), BAP No. AZ-12-1644-DPaKu (B.A.P. 9th Cir. Feb. 5, 2014)
- Tag(s):
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- Ruling:
- The Bankruptcy Appellate Panel of the Ninth Circuit affirmed the Bankruptcy Court’s order approving the Chapter 7 Trustee’s sale of real property transferred to Debtor post-petition upon the death of the Grantor under a Beneficiary Deed under Arizona Law, which had been executed and recorded prepetition. Particularly, the Bankruptcy Appellate Panel held that the Debtor’s contingent interest in the real property under the Beneficiary Deed was property of the estate under 11 U.S.C. § 541(a)(1).
- Procedural context:
- Appeal from the Bankruptcy Court for the District of Arizona approving the Chapter 7 Trustee’s sale of real property and holding that the real property was property of the estate under 11 U.S.C. § 541(a)(1). The Bankruptcy Appellate Panel reviewed the Bankruptcy Court’s decision de novo.
- Facts:
- As part of her estate plan, a Grantor executed a Beneficiary Deed transferring real property to her grandson, the Debtor, effective upon her death. The Beneficiary Deed was subsequently recorded in the real property records. Thereafter, the Debtor and his wife filed a joint chapter 7 petition. The Debtor did not disclose an interest in the real property in his bankruptcy schedules. Three days after the Debtor filed his petition, the Grantor died thereby transferring the real property to the Debtor. The Chapter 7 Trustee then moved to sell the real property, as property of the estate, free and clear of liens pursuant to 11 U.S.C. § 363(b) and (f). The Debtor objected.
- Judge(s):
- Dunn, Pappas and Kurtz, Bankruptcy Judges
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