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    • maxmycardagain
    • By maxmycardagain 11th Oct 17, 5:31 PM
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    maxmycardagain
    Bankruptcy and bequests
    • #1
    • 11th Oct 17, 5:31 PM
    Bankruptcy and bequests 11th Oct 17 at 5:31 PM
    (not me!)

    If someone went BR and had a bequest in a will already left but not available till a 3rd party died, could the insolvency place a charge on it ot demand it?

    a relative has a portion of a property (about 20%) due when the surviving partner passes away and the property is sold....
    Instead of picking fault, pick up a life........ you might like it
Page 1
    • silvercar
    • By silvercar 11th Oct 17, 6:41 PM
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    silvercar
    • #2
    • 11th Oct 17, 6:41 PM
    • #2
    • 11th Oct 17, 6:41 PM
    I would have thought that they don't inherit until the surviving partner passes away. Up to that point it is just that they are aware of a future inheritance.
    • Mouse007
    • By Mouse007 11th Oct 17, 8:08 PM
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    Mouse007
    • #3
    • 11th Oct 17, 8:08 PM
    • #3
    • 11th Oct 17, 8:08 PM

    could the insolvency place a charge on it Sort of yes (a restriction could be lodged with Land Registry) ot demand it NO ?
    Originally posted by maxmycardagain
    The Insolvency Service stand in the shoes of the bankrupt, acquiring their rights, nothing more. This is an asset of the bankrupt, just one that can't be converted until certain events occur.

    This would therefore be treated as a long term asset and the IS have to wait to collect.

    See 31.5.59 A reversionary interest in a trust here
    • maxmycardagain
    • By maxmycardagain 11th Oct 17, 8:30 PM
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    maxmycardagain
    • #4
    • 11th Oct 17, 8:30 PM
    • #4
    • 11th Oct 17, 8:30 PM
    The Insolvency Service stand in the shoes of the bankrupt, acquiring their rights, nothing more. This is an asset of the bankrupt, just one that can't be converted until certain events occur.

    This would therefore be treated as a long term asset and the IS have to wait to collect.

    See 31.5.59 A reversionary interest in a trust here
    Originally posted by Mouse007
    Post-discharge (auto or early) the inheritance reverts to the person named though?
    Instead of picking fault, pick up a life........ you might like it
    • Mouse007
    • By Mouse007 11th Oct 17, 8:38 PM
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    • #5
    • 11th Oct 17, 8:38 PM
    • #5
    • 11th Oct 17, 8:38 PM
    Post-discharge (auto or early) the inheritance reverts to the person named though?
    Originally posted by maxmycardagain
    Nope, it's gone.

    All assets of the bankrupt (except excepted* assets) belong to the IS unless they disown them (unlikely here).

    You or others can however offer to buy the beneficial interest back (at a big discount perhaps - see link).

    * excepted (exempted) assets are the normal household stuff required for basic living (Bed, cooker, TV etc and household provisions).
    • maxmycardagain
    • By maxmycardagain 11th Oct 17, 9:04 PM
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    • #6
    • 11th Oct 17, 9:04 PM
    • #6
    • 11th Oct 17, 9:04 PM
    theres 2 amounts 2 different wills/people, 1 will have to change her will if he goes BR, the other i dont know about....maybe/maybe not
    Instead of picking fault, pick up a life........ you might like it
    • maxmycardagain
    • By maxmycardagain 11th Oct 17, 9:05 PM
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    maxmycardagain
    • #7
    • 11th Oct 17, 9:05 PM
    • #7
    • 11th Oct 17, 9:05 PM
    I suppose - technically - its just a wish on a list, either could be in a care home years eating the money at £600/week...

    All to play for as they say
    Instead of picking fault, pick up a life........ you might like it
    • maxmycardagain
    • By maxmycardagain 11th Oct 17, 9:06 PM
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    maxmycardagain
    • #8
    • 11th Oct 17, 9:06 PM
    • #8
    • 11th Oct 17, 9:06 PM
    Is it an assett if the will is changed post-BR?
    Instead of picking fault, pick up a life........ you might like it
    • Mouse007
    • By Mouse007 11th Oct 17, 10:09 PM
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    • #9
    • 11th Oct 17, 10:09 PM
    • #9
    • 11th Oct 17, 10:09 PM
    Is it an assett if the will is changed post-BR?
    Originally posted by maxmycardagain
    It's not an asset until the will maker dies (the will maker can't change their will after death) ....

    ... my earlier answers assumed someone was dead

    you can change a will anytime before you die
    • TheGardener
    • By TheGardener 12th Oct 17, 1:10 PM
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    TheGardener
    When I went BR, my parents were elderly, as one of their two children it was already clear to the family that on their death, all their remaining assets (including property)would be left 50/50 to me and my sibling. I didn't tell my OR that I had elderly parents who 'might' die during my BR year - why would I do that - it would be a ridiculous suggestion. Neither did the OR ask "have you got any relative who might die in the next 12 mths and leave you an asset?"

    The OR does not to my knowledge have the right or inclination to secure an asset that is not really an asset at all. Until the benefactor dies - there is no asset and I wouldn't even mention it to the OR unless the BR has already been legally gifted (as a realisable asset) the asset during the benefactors lifetime.
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