Trusts and BR

timpe

Hi there,

Just wondering if anyone has any knowledge or experience of trusts in BR? I am the fortunate recipient of some inheritance which will be held in trust to protect it from my BR (according to the family solicitor). I am the sole beneficiary of the trust. When I mentioned this to my insolvency practitioner who liquidated my business he said it raised alarm bells in his head but he hadn't dealt with any trusts in BRs so wasn't 100% sure. He thought that the OR could dissolve the trust to access the funds. My debts are around 40K and the trust is worth around 120K.

Does anyone have any similar experience of trusts with their BRs or the OR? Do we take the family solicitors word and proceed with my BR? Is the trust 100% secure?

many thanks in advance

silvercar

I'm not understanding here: you are the sole beneficiary of 120k and have debts of 40k, yet are intending bankruptcy?

Why wouldn't you want to clear your debts with your inheritance? That way you protect your credit rating, have no hassle with bank accounts etc and have 80k in your pocket.

If you do go bankrupt and the money stays in trust, you won't have access to it for years and you will have problems with credit for the foreseeable future. I would expect that with that sort of money you will want to buy a home at some stage, if you want a mortgage the fact that you have been bankrupt will have a huge impact.

Gemlou26

I think this may be abit of a grey area, I would take it that if there is a way the OR can access it they will try, so you need to be 100% confident in this solicitors advice. For that amount of money I would be getting a second opinion.

dmg24

timpe wrote: »

Hi there,

Just wondering if anyone has any knowledge or experience of trusts in BR? I am the fortunate recipient of some inheritance which will be held in trust to protect it from my BR (according to the family solicitor). I am the sole beneficiary of the trust. When I mentioned this to my insolvency practitioner who liquidated my business he said it raised alarm bells in his head but he hadn't dealt with any trusts in BRs so wasn't 100% sure. He thought that the OR could dissolve the trust to access the funds. My debts are around 40K and the trust is worth around 120K.

Does anyone have any similar experience of trusts with their BRs or the OR? Do we take the family solicitors word and proceed with my BR? Is the trust 100% secure?

many thanks in advance

It is people like you that give BRs a bad name. Actually look at what you have (and maybe look at the situations of those who genuinely need BR), and then perhaps reconsider your situation?

rubytuesday

So you could afford to pay off your debt then. That's great news!

timpe

I figured somebody might bite my head off about this. Possibly rightly so. Maybe I wrote my question wrongly originally. I don't have the 120K personally. My family don't particularly want to see 40k (or less say if I came to an agreement with creditors say) going down the plug hole of my debts. I am currently on the dole with debt collectors drawing in. I may not seem to be in the same position of others on here going BR but I have child and partner and am seriously struggling to get by. I'm not particularly keen on giving a company more money that ruined my business by making 100K out of me a year leaving me with nothing who now want even more money out of me now it's gone bust. Call me old fashioned but I'd rather not pay them a penny more.

Gemlou26

I don't agree with the others on this one, if Timpe's family have sought professional advice and this was what was recommended by the family solicitor, then what is the issue.

The money isn't there now and if the family arn't willing to pay off the debts now, then Timpe is still insolvent, lets face it who's going to say no don't do that I'd rather it go towards the creditors than my childs future, I certainly wouldn't. Timpe's got a child to think about, good luck I say.

dojoman

Is the person who is leaving you the money already deceased? Also are we talking cash or property?

timpe

dojoman wrote: »

Is the person who is leaving you the money already deceased?

No. It's essentially an inheritance "advance" if you like. At our solicitors advice it is to be protected in trust from my creditors. The solicitors, my insolvency practitioner and the CAB have all advised that I go BR rather than settle my debts. Just to clarify too. The trust is currently a piece of paper i.e. there is no bank account nor funds allocated to it.

dojoman

Sorry to appear thick, but has the inheritance been left to you already or is it something that could happen in the future?

timpe

dojoman wrote: »

Sorry to appear thick, but has the inheritance been left to already or is it something that could happen in the future?

It's not been left already. It's something that could be in the future but we're talking the very near future.