Dividing up the estate: Brother with IVA

kwackerman

Hi,

Our father died recently.
The estate is to be divided between the 4 children plus some small bequests for grand children etc.
We have had the house valued and it would sell very quickly. Probate should be straight forward too.
Question:
Once the house has been sold and all monies accounted for etc. can I (as the executer) pay out the shares to 3 of us but delay paying out the share to the other brother until a later time, about 3 months later?
He is free of his IVA in December.

Yorkshireman99

kwackerman wrote: »

Hi,

Our father died recently.
The estate is to be divided between the 4 children plus some small bequests for grand children etc.
We have had the house valued and it would sell very quickly. Probate should be straight forward too.
Question:
Once the house has been sold and all monies accounted for etc. can I (as the executer) pay out the shares to 3 of us but delay paying out the share to the other brother until a later time, about 3 months later?
He is free of his IVA in December.

The brother is obliged to disclose the legacy under the terms of the IVA. If you assist him to avoid doing so that could have serious legal consequences for you both. It may well be conspiracy to pervert the course of justice.

Sacredcat

Probate can take a long time to obtain. executors cannot be compelled to distribute before 1 year. It's only 6 months until December. Would anyone criticise the Executor for waiting for the year to pass? Within that year you have also got to do your ads in the Gazette and local paper and they take 2 months which is yet another delay.
I suppose it depends how recently your Dad passed away.

Mojisola

kwackerman wrote: »

Our father died recently.

The estate is to be divided between the 4 children plus some small bequests for grand children etc.

delay paying out the share to the other brother until a later time, about 3 months later?

He is free of his IVA in December.

AIUI, it won't make any difference. The date of your father's death is the date that is important, not when the money is actually distributed.

pollypenny

Sounds like a great opportunity for your brother to pay off his debts.

Sacredcat

The brother has already almost paid his debts. Well done.

Slightly off topic, maybe but, Does an IVA come up in a bankruptcy search, because isn't it an alternative to bankruptcy? (Perhaps this does not matter since the Executor actually knows about the IVA)
The debtor has a duty to the IVA Company to report any changes in financial circumstances, I think(from having known someone with an IVA).

Keep_pedalling

Your brother actually has to inform his Insolvency Practitioner as soon as he is aware that he is going to receive a windfall. Failure to disclose is a criminal offence, and if any of his creditors found out he had hidden this they would likely file to make him bankrupt.

Hopefully his inheritance will allow him to clear his depts in full and allow him to make a fresh start with whatever money is left over.

antrobus

Yorkshireman99 wrote: »

The brother is obliged to disclose the legacy under the terms of the IVA. If you assist him to avoid doing so that could have serious legal consequences for you both. It may well be conspiracy to pervert the course of justice.

I'm not sure about it being "conspiracy to pervert the course of justice", I'd have thought it was conspiracy to defraud.

You can get up to ten years for that.

nom_de_plume

Sacredcat wrote: »

The brother has already almost paid his debts. Well done.

Without detail from the OP, there is a distinct possibility the IVA only covers a percentage of the original debt so there may be a plan afoot to avoid having to pay the whole of the debt plus interest! (100% speculation on my part).

Better advice on this topic is probably available on the IVA website and here's a similar thread - http://www.iva.co.uk/forum/topic.asp?TOPIC_ID=70013

nom_de_plume

Perhaps better reading - http://www.iva.co.uk/forum/topic.asp?TOPIC_ID=24970

nom_de_plume

To do his job correctly the OP should be checking for bankruptcy, etc. of any beneficiaries before distribution - https://www.gov.uk/search-bankruptcy-insolvency-register