Sequestration in Scotland: Inheritance After Discharge

CaelanT

Hi

My bankruptcy was February 2014 with automatic discharge in February 2015.My payment plan continued until it ended in 2017 after 3 years.

I was named as a beneficiary in my parents wills in the event both died in 2012. My father died in 2015 after my discharge leaving everything to my mother. My mother died in January 2017 which left me with a 1/3 share (cash inheritance only with my brother and sister receiving 1/3 each also). The trustee told me just after my mother passed away that any inheritance I was left had to be paid to him.I subsequently called AiB and on 3 occasions after I was informed that as I did not receive my inheritance prior to discharge I did not have to hand it over to the trustee. The trustee has pursued this over the last year and I have engaged AiB again. Their latest response is as follows:

"We have responded to your Trustee with a letter advising that after further consideration, we consider your inheritance to be a non-vested contingent interest, the interest in which passed back to you upon your discharge.

As your mother passed after the date of your discharge, the interest had already passed back to you on this date.".

Being completely clueless is AiB stating that I have to hand over my inheritance or are they stating that I do not? From everything I can ascertain from research they are saying that as my mother passed away after discharge I keep my inheritance. I have already made a payment in the last couple of weeks to the trustee under threat of legal action against me but don't know if I now have to chase him to get it back.

Thanks for any help. Am totally confused.

TheGardener

CaelanT wrote: »

...Their latest response is as follows:

"We have responded to your Trustee with a letter advising that after further consideration, we consider your inheritance to be a non-vested contingent interest, the interest in which passed back to you upon your discharge.

As your mother passed after the date of your discharge, the interest had already passed back to you on this date."....

I know nothing about the Scottish system but the above says that you have the inheritance - not the Trustees and AiB have written to the Trustees to tell them that. Send the Trustee a copy of the letter asking for the money back.

CaelanT

Thanks for the response. I have spoken with AiB and they have confirmed that the inheritance is mine. I also then called the trustee who received the letter a week before but had not contacted me. On my call I was advised to submit my bank details which I did, and then had the funds deposited back within 2 hours. My sequestration is now being wrapped up and being it's my birthday tomorrow I'm a very happy camper. Bad enough I lost both parents in less than 2 years, but then dealing with this has been a nightmare.

Some advice for others..............never accept an experts advice or instruction as being gospel. In this case the "expert" was the trustee who was adamant he receive my inheritance. The following is what occurred over the last year to get me to where I am now:

1. Trustee informed me I had to hand over inheritance.
2. 3 calls to the AiB where they confirmed each time I should not hand it over.
3. Trustee said his interpretation of the law was the correct one. Told I faced fraud charges.
4. Chased by trustee for 10 months.
5. Opened a case with AiB and was actually informed that I did have to hand over the cash initially.
6. Questioned this ruling as the wording in their letter made no sense regarding relevant dates and bankruptcy act.
7. Trustee threatens me with fraud charges again and I agree to make a payment.
8. AiB does proper due diligence and comes back with the decision that I keep my inheritance.
9. Trustee is now in agreement and everything is as it should be.

If I had not kept on this and had just taken the first instruction I would have lost my inheritance. It has made me wonder how many other people have been in my position and blindly handed over what could be very large sums of money without thinking because they have been told by a trustee to do so. Do your own research. Contact the relevant governing body. If not happy with the decision question the decision.