Case Summary:
The Chapter 7 Debtor was the beneficiary of a P.O.D. account. Between the date of filing and 180 days after filing, the owner of the P.O.D. account died. The Debtor turned over the non-exempt portion of the proceeds from the P.O.D. account over to the Chapter 7 Trustee. Later, the Debtor reconsidered and demanded that the Chapter 7 Trustee return the funds. The Chapter 7 Trustee refused, and the Debtor commenced an adversary proceeding to recover the funds. The Court granted summary judgment in favor of the Debtor, holding that under Wisconsin law, a P.O.D. beneficiary has no interest in a P.O.D. account during the P.O.D. account owner’s lifetime. In addition, under Wisconsin law, the proceeds were not a bequest, inheritance, or devise for purposes of § 541(a)(5)(A). Therefore, the Debtor had no interest in the account at the time of filing that entered the bankruptcy estate.

Statute/Rule References:
11 U.S.C. § 102(3)
11 U.S.C. § 541(a)(1)
11 U.S.C. § 541(a)(5)
Wis. Stat. § 705.01(6)
Wis. Stat. § 705.03(2)
Wis. Stat. § 851.17

Key Terms:
Bequest
Devise
Inheritance
Property of the Estate
P.O.D. Account