Inheritance, windfall and IVA.

Birdcage

X has an IVA. Parent recently died leaving a part of a house to them.( one third of half the house ... 1/6th ) Other parent still alive and owns the other half until their death. Does X have to declare this to their IP now.? Will says they cannot sell it unless the Parent still alive agrees.

DorisTrousers

Whilst I would normally say that honesty is the best policy, without scrutiny of the bequeath I would recommend caution.

The exact same thing happened to me when my mum died, she left her half of the house to 4 kids. However, the bequeath was invalid as it automatically passed to my dad, despite my mums request.

It may count as an asset, but do not automatically assume so. if it does, then the I.P. has to be informed.

Birdcage

It will be declared they just need to know if it counts as a windfall now , or when their other Parent dies.
their 1/6 of the house is held in trust until the second death. They cannot sell it ( stated in the will) so cannot realise any money to pay into the IVA So are wondering if it is actually a windfall that needs to be declared now.

sourcrates

I would not class this as a windfall, as it cannot realistically be realized yet.

"Your IVA may contain a windfall clause. A windfall is money unexpectedly received during the period of an IVA. For example, winning the lottery, an inheritance or large bonus payment. If your IVA has a windfall clause, you will have to pay the money into your IVA.

If you don’t tell your IP about your change in financial circumstances you could be breaking the law".

They class a windfall as money, not property, to be safe i would tell them, but all the person still in occupation has to do is refuse to sell, so then you would be covered.

Keep_pedalling

If you are the executor you should take professional advice. Get this wrong and you can end up personally responsible for any financial fall out.