Urgent question

greenbrucelee

My final payment to my IVA is March 30th next year. I had to move back in with my mother because of my debts but unfortunately she has had a stroke. Now obviously I don't want anything to happen to her but I was wondering what happens if she was to die as I know she has left me a sum of money as my inheritance and I don't want it to go into the IVA.

Johnsmith2016

Check your IVA to see if you have a windfall clause - 99% if the time you do which means any inheritance will go into the IVA pot.

To avoid this could you not change the will so the inheritance goes to a brother or sister etc?

Or change to bankcrupty - which last 12 months, so a smaller window of time to wait.
Without knowing more about circumstances hard to advise further.

greenbrucelee

thanks, my mum does have it so it is going into a trust fund and it was supposed to pay me money monthly. Could I say to the executor that if anything did happen to my mum during the net 12 months not to give me any money until it was over?

Johnsmith2016

You need to seek professional advice regarding this matter. Can the trust not be set up so you do not gain access to it until after a certain date or time? You need look into the specifics of your policy and seek help from someone who deals with these

greenbrucelee

Thanks. Well one of the executors is my mums close friend and the other is a friend who is also a financial adviser. I will mention to both.

I am actually aware of my mums will as she has told me. Basically I will get 30k in a trust a 10k lump sum and any residue after everything is sorted will go to me which could end up being 20k. Although this could dramatically change if my mum ends up needing care. I actually wouldn't grudge it if I didn't get anything as my mum has given me enough over the years but I would hate it if it did go into the IVA.

memberme

You should follow the advice of the first response and have the funds paid to a sibling etc.If they are trustable they can then give you the money hush hush.
If you have funds left in your name in trust, whilst under an iva, you may get away with it if it's kept quiet but officially it would need handing over.

greenbrucelee

Thanks I will look into it.

Am I correct in saying that once I have made my final payment in March next year that it wouldn't matter if my mum was to die and I got the money after that? My IVA is supposed to be 5 years and I am on course for paying back more than a grand of what was originally stated I would pay back.

UpToMyNeckInIt

That last point (whilst sounding very reasonable) is actually a very grey area: I have heard that some IVA providers maintain that you remain bound by the IVA terms until you receive the completion certificate, which of course may be some months after the final payment.

Another thing to consider is if your Mum was to willing to help you make a 'full and final' offer by paying the remaining 11 Months payments in one sum. That way, if accepted, the completion process is brought forward considerably.

Finally, if you were to receive a cash 'gift' from your Mum, this is not a 'windfall', as opposed to being bequeathed a cash sum, which definitely is.

Gifts and windfalls are two legally distinct things, and cash 'gifts' are not typically required to be handed over under IVA 'windfall' clauses.

dancingfairy

I think the relevant date would be the date of death, otherwise people would string out receiving their inheritance.
I don't know what would happen if you didn't declare it/ didn't physically received cash until the iva had formally finished. I imagine there must be a mechanism in which the iva certificate of completion can be cancelled or some sort of prosecution for fraud can be brought?
You could ask your mum to rewrite her will and leave it all to your brother ( so technically none of it is yours on paper but then you are reliant on your brother handing over your 'share', any tax/ gifting implications between the 2 of you in terms of effects of benefits etc pl is also any issues surrounding whether your mother is in a fit frame of mind to be changing her will).
A very difficult situation. I think your best bet is trying to conclude the iva early if possible or else waiting to see whether the worst does happen and then find out how it's treated.
A difficult situation for sure .
Df