Bankrupt recieving inheritance

wilky1970

Hi, myself and wife are going bankrupt in the near future, once we have ironed out a few issues etc. ie moving into rented accomidation etc. however, we have an old relative that we are in the will of should she die, what is the situation for a BR if she dies? eg. if she dies in year 1 whilst BR if she dies when discharged etc. would it be wise to have her leave her estate to our children that are only young (11 and 9). advice please. thanks!

skylight

Any inheritance you receive whilst bankrupt becomes the property of the OR. Once discharged then its yours.

My father has changed his will, that my share currently goes directly to my children, although he is not old and not expected to pass on, we are both practical and accept anything can happen!

dalip

If you have a IPA then the OR ill still be interested up to a point.Gets confusing then.D

JCS1

It's also the date of death which is important, rather than the date you receive any money.

skylight

JCS1 wrote: »

It's also the date of death which is important, rather than the date you receive any money.

Totally! Its what I meant, but didn't write!!

So death during BR means any inheritance will be the ORs (or they can claim it anyway). Same as a lottery win - they get it all and deduct all debts and expenses before handing back the rest. (basically).