We’d like to remind Forumites to please avoid political debate on the Forum.
This is to keep it a safe and useful space for MoneySaving discussions. Threads that are – or become – political in nature may be removed in line with the Forum’s rules. Thank you for your understanding.
📨 Have you signed up to the Forum's new Email Digest yet? Get a selection of trending threads sent straight to your inbox daily, weekly or monthly!
The Forum now has a brand new text editor, adding a bunch of handy features to use when creating posts. Read more in our how-to guide
Life Policies - Have I Got This Right?
script
Posts: 718 Forumite
If your policy has a surrender value – it will be seen as an asset and the Official Receiver will require it
If there is no surrender value but and when you die – even years after your Bankruptcy is over – the money goes to the Official Receiver - because it was an potential asset before your Bankruptcy
You could let the policy lapse – and take out a new one after you are discharged from Bankruptcy
But because of your age - the premiums are likely to be higher than the original premiums
However, you can buy the Official Receivers “interest” in your existing policy for £50.00
As soon as you are discharged from Bankruptcy – the Official Receiver has no claim on the money
However, if you die whilst you are Bankrupt – and the money gets paid to your estate – the official receiver gets all the money. Because the policy is seen as an “after acquired asset.”
But - you can arrange to have the policy “written” so that it pays a beneficiary – and as long as that person is not Bankrupt – the Official Receiver has no claim on the money
The same applies to the “death benefit” part of a pension
Just so I know is all this correct?
If there is no surrender value but and when you die – even years after your Bankruptcy is over – the money goes to the Official Receiver - because it was an potential asset before your Bankruptcy
You could let the policy lapse – and take out a new one after you are discharged from Bankruptcy
But because of your age - the premiums are likely to be higher than the original premiums
However, you can buy the Official Receivers “interest” in your existing policy for £50.00
As soon as you are discharged from Bankruptcy – the Official Receiver has no claim on the money
However, if you die whilst you are Bankrupt – and the money gets paid to your estate – the official receiver gets all the money. Because the policy is seen as an “after acquired asset.”
But - you can arrange to have the policy “written” so that it pays a beneficiary – and as long as that person is not Bankrupt – the Official Receiver has no claim on the money
The same applies to the “death benefit” part of a pension
Just so I know is all this correct?
0
Comments
-
Spot on.....Hi, im Debtinfo, i am an ex insolvency examiner and over the years have personally dealt with thousands of bankruptcy cases.
Please note that any views i put forth are not those of my former employer The Insolvency Service and do not constitute professional advice, you should always seek professional advice before entering insolvency proceedings.0 -
Yep.....yep.....and yep......
**damn...MUST learn to post faster...**We all die. The goal isn't to live forever, the goal is to create something that will0 -
Thank goodness I've finally "got" it.
I do get a bit OCD when it comes to preparing for B/R.
And it in finding out - what can and can't happen after.
By the way I would be completely "lost" if it wasn't for all the help I get on the forum.
Thanks everyone.0
This discussion has been closed.
Confirm your email address to Create Threads and Reply
Categories
- All Categories
- 354K Banking & Borrowing
- 254.3K Reduce Debt & Boost Income
- 455.3K Spending & Discounts
- 247.1K Work, Benefits & Business
- 603.7K Mortgages, Homes & Bills
- 178.3K Life & Family
- 261.2K Travel & Transport
- 1.5M Hobbies & Leisure
- 16.1K Discuss & Feedback
- 37.7K Read-Only Boards