Inheriting after Bankruptcy

Own_experience

I was made bankrupt in june 08 and accepted a Bru in November that told me any inheritance after my Bankruptcy end date, june 09, would be mine. My nanny died in March and I received a letter last month to say that i had inherited some money. I had to send my Bankruptcy order to the solicitor acting on behalf of her estate so that she could see I was not bankrupt. Today I received a letter from my O.R telling me they had taken the inheritance as part of my Bankruptcy Estate. I have been on the phone and queried this and just wanted everyone who is going bankrupt, is bankrupt or related to someone who is bankrupt to know that when someone dies its the date of their death that decides if you are going to have the inheritance not the date the Will is all completed! Death is not a nice thing for anyone and knowing that people you love/d want/ed you to have something they worked hard for and you can't have it. They might as well leave your share to charity!

fermi

I'm afraid so.

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

xvi Interest under a will

The trustee can claim an interest under a will when such interest devolves upon the bankrupt before discharge. This means that if the person who made the will dies during the period prior to the discharge of the bankrupt, the trustee can generally claim the property bequeathed to the bankrupt, under the provisions of section 307, even if it is not received by the bankrupt until after his/her discharge.

Where, however, the property is left to the bankrupt under a protective trust the trustee will not be able to claim the property. A protective trust is usually created in relation to freehold or leasehold property and gives the beneficiary of the trust a time-bound interest in the property(such as a right to occupy to a certain date) without having the right to sell it.

Where the official receiver encounters a protective trust, and the property is of sufficient value to justify it, he/she should seek legal advice to establish the validity of the trust and explore any means of challenging it.

In all cases, notice of the bankruptcy order (NORD1) must be given to the trustees/executors of the will as soon as possible. If the official receiver becomes trustee a second notice should also be sent in duplicate, with the trustees of the will being asked to return one copy receipted for the file (form NEXE).
Notwithstanding the bankruptcy order, a bankrupt retains his/her right to challenge the provisions of a will under The Inheritance (Provision for Family and Dependants) Act 1975 and the trustee plays no part in such proceedings.

Many people here have changed their will while people remain undischarged, then changed it back afterwards.

confused76

aww no that's such a big shame:(
i'm so sorry to hear about your nan...thanks for sharing on here x

pmg19680

Own_experience wrote: »

I was made bankrupt in june 08 and accepted a Bru in November that told me any inheritance after my Bankruptcy end date, june 09, would be mine. My nanny died in March and I received a letter last month to say that i had inherited some money. I had to send my Bankruptcy order to the solicitor acting on behalf of her estate so that she could see I was not bankrupt. Today I received a letter from my O.R telling me they had taken the inheritance as part of my Bankruptcy Estate. I have been on the phone and queried this and just wanted everyone who is going bankrupt, is bankrupt or related to someone who is bankrupt to know that when someone dies its the date of their death that decides if you are going to have the inheritance not the date the Will is all completed! Death is not a nice thing for anyone and knowing that people you love/d want/ed you to have something they worked hard for and you can't have it. They might as well leave your share to charity!

I just wanted to say I am so sorry and I really feel for you . It's so cruel when you ae BR and just have a little light at the end of the tunnel for a brighter future and it is pulled from under you. I know that I may face a similar situation and it is really awful
I hope you get on ok and have a bright future :grouphug:

property.advert

This is an issue I will probably have to deal with and I'm not sure how to just at the moment. Leaving it to someone else (my child) would mean I lose the ability to inherit and though there are ways and means, the person involved will not do anything that complicated. A difficult decision awaits.

tigerfeet2006

Yes, but it can be changed again after you are discharged. It is only if the worst should happen, God forbid, during BR.

fiveyearplan

Better it go to your child than the OR.