been named as a beneficiary

ohtobefree_2

hi all, my year is up and am now discharged, i want to thank everyone for their help leading upto and during the past year, i do have another question, i have been named as a beneficiary in a will, the person died before my discharge, although have only just received letter telling me i'm a beneficiary, what happens now, does anything i get to OR, thanks in advance.

PippaGirl_2

No idea about the beneficiary but I would hope that as you didn't receive the letter until after your discharge (was it dated after the discharge too?) then you ought to be ok but will wait for others to confirm. However, congrats on your discharge, onwards and upwards!

ohtobefree_2

Yes dated 2 days after my discharge, thanks for the congrats, hopefully someone will be along soon with some know of these matters.

fermi

If the person died before you were discharged, then legally the inheritance is an asset in your bankruptcy estate and can be claimed by the OR/trustee.

Sorry.

You are also obliged to inform the OR/trustee of any after acquired asset like this.

PippaGirl_2

Oh dear :-(

fermi

http://www.insolvencydirect.bis.gov.uk/freedomofinformation/technical/CaseHelpManual/A/AfterAcquiredProperty.htm#17

17. 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.

ohtobefree_2

Thanks fermi, so do i have to inform OR or just fill in the critical information form and let them do it, oh well i can't miss what i haven't had, just wanted to know the right thing to do.

ohtobefree_2

There wasn't a will, anything is just going to living relatives.

fermi

I would imagine that the executor or whomever will realise they have a duty to check and notify.

However, you do also have a duty to notify the OR/trustee of it yourself, so you would be advised to do so.

3. How does the trustee become aware of after-acquired property?

The bankrupt has a duty to co-operate with the trustee, specifically as regards notifying the trustee in writing of any after-acquired property within 21 days of becoming aware of its existence.

This requirement is set out in form NTB2 which is served on the bankrupt in every case and requires a signed copy to be obtained for the office file, which acknowledges that the bankrupt has read and understood the document. Any notification from the bankrupt by telephone should be followed up and the bankrupt requested to confirm in writing.

However, the official receiver should not fail to take any action just because written confirmation is not received from the bankrupt.

Often a creditor or other third party will contact the official receiver if they believe that the bankrupt has acquired property of which the trustee is unaware. Valid notification can be received not only in writing but also via telephone and e-mail. If information is received in this manner, appropriate enquiries should be made of the bankrupt to enable the official receiver to consider whether a claim to the after-acquired property is appropriate.

fermi

ohtobefree wrote: »

There wasn't a will, anything is just going to living relatives.

Same principle applies I'm afraid. Will, or no will.

ohtobefree_2

Thanks for that Fermi, will write to OR and inform them, so to clarify, if i am named as a beneficiary from discharge date, providing the death was after discharge date, I don't have to notify OR.