BR & Inheritance

Lacoste-kid

qwertyuiop

fiveyearplan

Hi LK and welcome. I'm not an expert in the inheritance field but hopefully by bumping this thread up someone with more knowledge will see it. You can always ring the insolvency service or one of the debt charities.

I do know that wills can be changed so it doesn't matter that they've already made them.

JCS1

It depends on the Trust - if the Trust is in your name, the OR can still take the money. To prevent this, they really need to change wills until after you're discharged.

localhero

Hi Lacoste-kid,

It is important that your parents' and uncle's Willls are changed so that you are not guaranteed to receive anything.

The solution is for your share to be left into a discretionary trust with you and 1 or 2 others as potential beneficiaries.

The trustees can then make payments to whom they want and more crucially when they want (ie after you are discharged from bankruptcy).

welshpaula

before i went bankrupt i took advice from an independant insolvency practitioner he advised me that if (god forbid) my parents passed away or i came into money whilst bankrupt the OR would stake a claim ! also we have life policies with legal and general these were also affected so if i died so much would be taken by the OR ! but do take proper advice ok paula x

localhero

Thats right the OR can make a claim.

They can't though where there is a discretionary trust in the Will. The trustees need simply wait until the beneficiary is discharged from bankruptcy before giving them any money from the estate.

peachyprice

Only if the person has already died and you're waiting to receive it.

localhero

Not unless you own the asset(s).

The problem invariably arises later on, when someone dies and there's an outright gift to the bankrupt person - the OR will then take that into account.

The trick is forward planning to prevent that happening.

As per my previous advice - if you know that somebody wants to leave you a gift in their Will, they will need to get it redrafted to include the discretionary trust.

In that situation the OR will not have a claim on it.

Waspeze

I think it depends who they use .. some include alterations in their original cost. I know my parents had theirs changed for free when I went BR.

fiveyearplan

I can make as many changes as I like in my will with no charge. I know what you mean about feeling cheeky to ask them to change will. I'm just hoping everyone who may leave me anything in a will lives until at least 4th April next year. They're all abroad anyway so don't know how anyone would find out anyway.

Rosey321

General question on this subject:

What would happen if someone came into money after being discharged from BR but was still within the 3 year IPA payment plan?