Opinion
Bankruptcy Case No. 03-93877.
October 19, 2004
OPINION
This matter having come before the Court on four Objections to Claimed Exemptions; the Court, having reviewed said Objections, the record of Debtor's bankruptcy, the written Briefs submitted by the parties, and the Stipulation of Facts Relating to Debtor's Claimed Exemption in All Life Insurance Proceeds and Objections Filed to the Claimed Exemptions, and being otherwise fully advised in the premises, makes the following findings of fact and conclusions of law pursuant to Rule 7052 of the Federal Rules of Bankruptcy Procedure.
The material facts in this matter are not in dispute and are contained in a Stipulation of Facts filed by the parties on September 1, 2004. The facts relate to the Debtor's claim of exemption in 100% of the proceeds of life insurance policies on her deceased spouse, James Stilwell. The Debtor's claimed exemptions were objected to by three creditors, Community Banks of Shelby County, Tuscola National Bank, and BLT III, and the Trustee, Marsha L. Combs-Skinner.
The parties were given the opportunity to file written memoranda of law. In the interim, both Judge Lessen and Judge Perkins have issued Opinions that deal squarely with the issues raised in the instant proceeding.
On August 26, 2004, Judge Lessen issued his Opinion in the case of In re Lisa R. McKinney, Case No. 04-70244 (Bankr. C.D. Ill. 2004), in which he followed a previous Opinion that he had authored of In re Bird, 288 B.R. 546 (Bankr. C.D. Ill. 2002). In that Opinion, Judge Lessen cited with approval the case of In re Bateman, 157 B.R. 635 (Bankr. N.D. Ill. 1993), in which Judge Schmetterer held that all proceeds from a life insurance policy payable to a debtor's spouse were entirely exempt, pursuant to the provisions of 735 ILCS 5/12-1001(f). On October 6, 2004, Judge Perkins issued his Opinion in the case of In re Mary B. Ashley, Case No. 04-80979 (Bankr. C.D. Ill. 2004), in which he concurred with Judge Lessen's Opinions in both the McKinney and Bird cases in holding that life insurance proceeds payable to a debtor's spouse are exempt in their entirety. In reviewing Judge Perkins's decision in Ashley, this Court finds that Judge Perkins made a thorough and well-reasoned review of both the statutory and case law concerning the exemption of life insurance proceeds. This Court can find no basis to depart from Judge Perkins' holding inAshley and Judge Lessen's decisions in both McKinney andBird.
Having found that the issues raised in the instant proceeding have been thoroughly addressed and ruled upon in both the Springfield and Peoria Divisions of this District, this Court finds that, based upon those decisions, the Objections to Claimed Exemptions must be denied. The Debtor, Margaret Jo Stilwell, is thus found to be entitled to a claim of exemption of 100% of the proceeds of life insurance policies payable to her as a result of the death of her husband, James Stilwell.