Bankruptcy and bequests

maxmycardagain

(not me!)

If someone went BR and had a bequest in a will already left but not available till a 3rd party died, could the insolvency place a charge on it ot demand it?

a relative has a portion of a property (about 20%) due when the surviving partner passes away and the property is sold....

silvercar

I would have thought that they don't inherit until the surviving partner passes away. Up to that point it is just that they are aware of a future inheritance.

Mouse007

maxmycardagain wrote: »

could the insolvency place a charge on it Sort of yes (a restriction could be lodged with Land Registry) ot demand it NO ?

The Insolvency Service stand in the shoes of the bankrupt, acquiring their rights, nothing more. This is an asset of the bankrupt, just one that can't be converted until certain events occur.

This would therefore be treated as a long term asset and the IS have to wait to collect.

See 31.5.59 A reversionary interest in a trust here

maxmycardagain

Mouse007 wrote: »

The Insolvency Service stand in the shoes of the bankrupt, acquiring their rights, nothing more. This is an asset of the bankrupt, just one that can't be converted until certain events occur.

This would therefore be treated as a long term asset and the IS have to wait to collect.

See 31.5.59 A reversionary interest in a trust here

Post-discharge (auto or early) the inheritance reverts to the person named though?

Mouse007

maxmycardagain wrote: »

Post-discharge (auto or early) the inheritance reverts to the person named though?

Nope, it's gone.

All assets of the bankrupt (except excepted* assets) belong to the IS unless they disown them (unlikely here).

You or others can however offer to buy the beneficial interest back (at a big discount perhaps - see link).

* excepted (exempted) assets are the normal household stuff required for basic living (Bed, cooker, TV etc and household provisions).

maxmycardagain

theres 2 amounts 2 different wills/people, 1 will have to change her will if he goes BR, the other i dont know about....maybe/maybe not

maxmycardagain

I suppose - technically - its just a wish on a list, either could be in a care home years eating the money at £600/week...

All to play for as they say

maxmycardagain

Is it an assett if the will is changed post-BR?

Mouse007

maxmycardagain wrote: »

Is it an assett if the will is changed post-BR?

It's not an asset until the will maker dies (the will maker can't change their will after death) ....

... my earlier answers assumed someone was dead

you can change a will anytime before you die

TheGardener

When I went BR, my parents were elderly, as one of their two children it was already clear to the family that on their death, all their remaining assets (including property)would be left 50/50 to me and my sibling. I didn't tell my OR that I had elderly parents who 'might' die during my BR year - why would I do that - it would be a ridiculous suggestion. Neither did the OR ask "have you got any relative who might die in the next 12 mths and leave you an asset?"

The OR does not to my knowledge have the right or inclination to secure an asset that is not really an asset at all. Until the benefactor dies - there is no asset and I wouldn't even mention it to the OR unless the BR has already been legally gifted (as a realisable asset) the asset during the benefactors lifetime.