inheritance whilst bankrupt

strimmerman

Hi,

I wonder if anyone can tell me what will happen now.

I am expecting to inherit money which will more than cover the amount I was declared bankrupt for. I am due for automatic discharge in November.

The death has already occured and therefore the inheritance will fall within my bankruptcy period.

Firstly I realise I have to tell the official reciever. However do I wait until I know exactly what money will be available or just tell him now that I am expecting some money and will get back in contact when I know how much......with probate issues this may take some time.

Does he have the right to take over administering anything such as sale of houses which are part of the estate as I will be the only beneficary? There is no will so the person was intestate and I am the only heir. I although the only close relative do not intending to apply for letters of administration myself (I am hoping my other half can do this.) However I also wondered if there was any restriction on being able to administer a will if you are bankrupt....my OH is also bankrupt. If there are then we would have to ask his parents to act in conjunction with an appointed solicitor.

When eventually the money materialises do I then have to pay the whole amount I was declared bankrupt for back in one lump sum or will they make a BRO......if it is paid back in a lump sum then does that mean I can have the bankruptcy annulled?

I am not trying to avoid paying this by any means I just want to be sure that I go about things in the most sensible and correct manner.

Many thanks for advance for anyones advice

dalip

Fermi is prob your best one to answer this so this will "bump" it and hopefully he will be up and about soon:D.Dx

fiveyearplan

Hi strimmerman - sorry to hear of your loss. I don't think I would tell them at the moment until you are nearer to knowing the amount etc but not sure if you have an obligation to do so within a specified period of time.

Fermi???

lisamummytoarchieplusbump

strimmerman wrote: »

Hi,


Does he have the right to take over administering anything such as sale of houses which are part of the estate as I will be the only beneficary? There is no will so the person was intestate and I am the only heir. I although the only close relative do not intending to apply for letters of administration myself (I am hoping my other half can do this.) However I also wondered if there was any restriction on being able to administer a will if you are bankrupt....my OH is also bankrupt. If there are then we would have to ask his parents to act in conjunction with an appointed solicitor.

When eventually the money materialises do I then have to pay the whole amount I was declared bankrupt for back in one lump sum or will they make a BRO......if it is paid back in a lump sum then does that mean I can have the bankruptcy annulled?

I am not trying to avoid paying this by any means I just want to be sure that I go about things in the most sensible and correct manner.

Many thanks for advance for anyones advice

hi if the person died before you went br it doesnt matter when the money gets paid to you it belongs to the OR, sorry you have to declare it. if the person died after you went br then its classed as aquired assets which changes things slighty but you will still have to declare

if the inheritance is in the form of property the OR may put a charging order(i think its called) to the property so when you do sell the OR will recieve some money. im not 100% sure if they will make you sell straight away but i think it all depends if there is sitting tenants or not. but you maybe able to get someone to buy the BI in it

i dont think you can get your OH to find out about the probate without you as its nothing to do with your OH, so if you declare you have no interest in the inheritance then it will go to the persons parents or to your children im cant remeber if it goes up or down the family if it skips a person.

yes if the money is more that what you went BR for and it covers fees then your BR will be annulled but it all depends if its still with the OR or with a trustee as a trustee charges loads more for there fees so it may sollow up alot more than you went BR for

fermi knows more of the technical facts im just saying my experience of it, so hopefully will be here soon, or maybe already been seen as its taking ages to type this as i have a child hanging off me

lisa

JCS1

Hi,

If you go the Insolvency Service website and check the publications there should be one called "can my bankruptcy be cancelled?" which details the annullment process.

You may also want to consult a solicitor for advise, as the annullment has to be made on court order. In a 'normal' annullment within a month or so of a BR order you have to pay money over to the creditors and get them to confirm in writing the balance is clear, and also pay OR fees before the annullment can be granted.

OR fee's start at £1,715 which also need paying (less amount paid when you went to court) + any out of pocket expenses such as house valuations, etc. Speak to your OR and let them know about the inheritance too.

HTH

strimmerman

Many thanks for the reply.

hi if the person died before you went br it doesnt matter when the money gets paid to you it belongs to the OR, sorry you have to declare it. if the person died after you went br then its classed as aquired assets which changes things slighty but you will still have to declare. When you say if they died while BR, which they did how does it change it....I understand that it means that I acquired it whilst within the BR period, but thats all I understand, what are the implications of that

if the inheritance is in the form of property the OR may put a charging order(i think its called) to the property so when you do sell the OR will recieve some money. im not 100% sure if they will make you sell straight away but i think it all depends if there is sitting tenants or not. but you maybe able to get someone to buy the BI in it. There is cash and a property and shares and a PEP. However mosst of the cash money will be swallowed up paying outstanding amount appertaining to the estate. The property is empty but was part way through a refurb and if sold quickly would lose maybe 50% of its true value, so I really don't want that to happen. Selling it would again more than clear the amount I was BR for but would leave very little. Is what you are saying that if for instance I could get my in laws to pay off the BR amount being the BI then that would take care of that issue. I could also make it so that it had a tenant if necessary to tey and delay things, so we could do all the necessary work, (it would be a relative living there).

i dont think you can get your OH to find out about the probate without you as its nothing to do with your OH, so if you declare you have no interest in the inheritance then it will go to the persons parents or to your children im cant remeber if it goes up or down the family if it skips a person. Yes I did wonder about that but would that not possibly be seen as trying to avoid paying by refusing the inheritance. The next in lne after me would be my children (no surviving spouse or parents), one will be 18 next year but the others are much younger. If we were able to do a variation to the instestacy would it have to be split between all of my children or could it just go to the one who is 17 thus releasing the assets to him early next year. Once again that would seem a good option but I don't want to be seen to be avaoiding payments deliberatly.

yes if the money is more that what you went BR for and it covers fees then your BR will be annulled but it all depends if its still with the OR or with a trustee as a trustee charges loads more for there fees so it may sollow up alot more than you went BR for. I am pretty sure that it has been sent to a trustee, I don't want to lose even more money over this. Does the BR have to be annulled or can I not just settle it without that. THB I don't care if it reamins on my file etc...I have learnt my lesson and to have it removed will make no diff as I never intend on credit etc. If that is not possible how much do you think the trustee would charge?

fermi knows more of the technical facts im just saying my experience of it, so hopefully will be here soon, or maybe already been seen as its taking ages to type this as i have a child hanging off me

Once again many thanks...I shall await fermi unless anyone has any other info


lisa

lisamummytoarchieplusbump

have a read through these links it explains it abit better then i can

http://www.insolvency.gov.uk/freedomofinformation/technical/casehelpmanual/A/AfterAcquiredProperty.htm

Charco_2

Dont forget about inheritance tax!

Also, DTI Ad valorem of 17%

It's an interesting question. OK so you know a relative has died and that possibly you will be in line to inherit but if there is no will this could take a long time to sort out. The estate may have to go through some sort of probate period with a solicitor until it can be decided who has the best claims and how much each claim deserves etc.

The rules state that you must declare to your Trustee when you you BECOME AWARE of YOUR ENTITLEMENT

So the question becomes: When are you entitled? When the relative passes away OR when the estate has been sorted out by the legal folk?

Probably best to tell your OR/Trustee but there are at least 101 questions in there. Quite Interesting!

lisamummytoarchieplusbump

inheritance tax now kicks in at 325k heres the link for it

http://www.direct.gov.uk/en/MoneyTaxAndBenefits/Taxes/BeginnersGuideToTax/InheritanceTaxEstatesAndTrusts/DG_179347

Pee

Tell the Trustee in Bankruptcy. I don't see why your OH would deal with the administration - it sounds like your family member, leaving all to you? You will probably be able to act, but your Trustee could also act and if they wanted to, I suspect the Probate Registry would let them act rather than you - due to your bankruptcy.

lisamummytoarchieplusbump

yeah they do a br search on you if its going through probate so your OR will find out. as my friend has just through probate and they charged her for doing a BR search and i think it was a silly amount like £50 to type your name in the gazette!