Debtor (wife) , passed away in January 2017; she had two life insurance policies with the surviving Debtor as the beneficiary. After his wife passed away, the surviving Debtor amended his Schedules to disclose the life insurance proceeds he received-and to exempt the proceeds under state law.
The Chapter 13 Trustee objected to the claim of exemption and moved to modify the confirmed Plan in order to use the insurance proceeds to pay creditors. The Debtor opposed the Trustee’s motion, and argued that the life insurance proceeds were not property of the estate since they were acquired more than 180 days after the petition was filed. He argued, alternatively, that the proceeds were exempt under state law.