Inheritance, IVA and solicitors

paulhf_2

Hi all,
I hope you can help, as I think I’m in need of a little advice.

Last year (around June) my fiancee lost her grandparents, who she had looked after during their illnesses, living with them in their home for around 10 years.

Following the will reading she was advised that they left her half of the inheritance - the other half going to her mother. Shortly after, quite out of the blue, a letter arrived from the solicitors stating that they were aware my fiancee had an IVA. We called the insolvency practitioner who had no clue about how they knew this as they had not been in contact with the solicitors. We suspect it was my fiancee’s mother who has told the solicitors about the her IVA - unfortunately they haven’t got on since her mum re-married as her partner has an unhealthy hatred for my fiancee (to the point were she had a solicitor write to him to threaten a restraining order) - as such we think that she was deliberately trying to make life awkward for her

As we understand it in the event of an IVA and an inheritance, the full amounts owed (not the IVA agreed amount?) needs to be paid back to the creditors? ...this is fine, and means her IVA will come to close sooner rather than later.

However, we received a letter through the post this morning from the solicitors stating that my fianc!e did have an inheritance (as we knew) and that they were to turn ALL the monies over to her insolvency practitioner due to the IVA - however the amount of the inheritance was not mentioned.

We found this highly unusual - it all seems a bit "cloak and dagger". It might be worth mentioning that the solicitor was one that her mother hired so we suspect he could be acting in her mother’s best interests, rather than straight down the line.

My question is firstly, is it normal practice for a solicitor to send such a letter without mentioning actually how much she was inheriting?

And secondly, if there were any amounts over - would the insolvency practitioner return that money to my fiancee once the debts had been settled?

Many thanks for any help.

Charco_2

I don't think this is normal, but I'll check - I would have thought that since your IVA is a VOLUNTARY Arrangement then the money would come straight to you and it would be your call as to whether or not you paid it in. (If you don't pay it in the IVA will fail obviously but the choice is still yours)

Charco_2

Discuss this with your IP.

The bad news is that the money is going to have to go to your IP/IVA... if you decided not to pay it in, they would probably pursue bankruptcy.

It's certainly not normal though.

1. It's strange that the solicitor found out as they wouldn't have been required to do a bankruptcy search on you and
2. The solicitor has a duty to you as executor of the will but no duty to your IP... YOU have the duty to your IP.

The IP will certainly pursue the inheritance to make sure everything that can be recovered will be recovered. (Not sure if you'd be that interested though because it hardly matters to you if it goes to mother-in-law or to creditors!)

Remember if the inheritance is big enough then you would be expected to pay back the full amount of the debts in the IVA, not just the agreed dividend. This would also include IP Fees and interest set at 8%...

skintflint103

She needs to ask the solicitor for a variation of the will, this in effect means she is refusing the terms of the will and should be able to indicate where the money will go. Make sure that person loves her!

Charco_2

On what grounds?

skintflint103

She dosn't want the inheritance,! she didn't like that person. when I pop off I'll leave you a few grand but as you don't like my posts you won't accept it and ask it be given to IVA nominee pension fund, they may give it back to you later they may not. any guesses?

Charco_2

But she cannot do that

skintflint103

She dosn't have to accept a bequest if she dos'nt want it, what happens to the bequest after this is up to the other beneficiaries.

skintflint103

Look at a 'Deed of Family arrangement' it has to be by agreement with all beneficiaries. C'mon people do they want the B"££$%%^s to lay their mitts on the girl's inheritance. It's much easier to give in than to fight. I'm suggesting some avenues that others have used well, there are plenty others.. think out side the box or meekly pay up!

Charco_2

If it was that simple, everybody would just do it... then come to some sort of arrangement with those that benefitted and get their inheritance anyway. It would be called fraud as well. It's unfortunate but that's the way it is.

I know you're gonna come back and call me the creditor's lackey and what not but I think you're a buffoon so I wont care.

It is very dangerous territory you're going into here - anonymously I might add - advising someone to defraud a legal contract they've entered into. I know you hate IVAs but this is actually scary to the point that someone might listen to you!

The vast majority of my posts on here are helping people to stick up for themselves in an IVA but there are no grounds here.

The money has been inherited and as you know in a Bankruptcy it would have been seized by the OR. It's slightly different here but the outcome is the same, "voluntarily" hand it over or you'll breach the terms of your IVA and be made bankrupt anyway - and the inheritance will be seized anyway by the OR.

I don't understand the problem though.
The debtor entered the IVA and agreed to repay as much as they could afford with an amount of debt forgiveness at the end of five years. Now it seems the debtor will be able to contribute MORE than originally agreed but will still be better off at the end of the IVA Term.

Sure it would have been nice if the inheritance had come later after the IVA had successfully completed, of course it would! But it didn't.

skintflint103

I never said it was simple, but it's a legal instrument that can be explored, it has been used without legal comeback. seek legal advice don't bother with CAB on this one. This buffoon still remembers you giving someone the advice to say that their car was a wreck and downvalue it. So don't throw stones my IVA lickspittle friend. If every one agrees that greedy tax subsidised lenders with extortionate rates should get all their debts paid , then yes I agree it's no problem. As I said easy to give up harder to fight.