Inherited 401(k) wasn’t asset of bankruptcy estate

Trial Notebook

By Steven P. Garmisa

Hoey & Farina

Posted August 18, 2021 11:31 AM

Two months before Holly Corbell-Dockins filed for bankruptcy in North Carolina, a former boyfriend died and left her a 401(k) account with $35,411. If it was an Individual Retirement Account, the money would have been an asset of the bankruptcy estate, and the bankruptcy trustee argued the same rule should apply to the 401(k). But U.S. Bankruptcy Judge George R. Hodges disagreed and denied the trustee’s motion for a turnover order. In re Corbell-Dockins, No. 20-10119 (June 4, 2021).Here are highlights of Judge Hodges …

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