Bankrupt beneficiaries want me to commit possible fraud

Owain_Moneysaver

It doesn't matter how long the beneficiary waits - they became entitled to the money at the date of death and must have declared it to their IVA adminstrator,  and if people could escape paying their IVA by stalling they would. They can't. 
Write to her saying that she has seven days to provide the information to the executor in compliance with the IVA or the matter will be placed in the hands of solicitors with all costs being deducted from her share of the estate. 

Niall02

Hi all, Just an update one of the beneficiary is now not responding to me. Their last interaction was that they stated "I can keep the money for 4 years and hung up." Basically until their IVA is up.

So what do I do now? How long am I legally allowed to keep their money for if they do not want it? 6 months a year, 4 years?

-taff

Have you checked the insolvency register to see if the company administrating their IVA appears there?

MoneySeeker1

Niall02 said:

Hi all, Just an update one of the beneficiary is now not responding to me. Their last interaction was that they stated "I can keep the money for 4 years and hung up." Basically until their IVA is up.

So what do I do now? How long am I legally allowed to keep their money for if they do not want it? 6 months a year, 4 years?

Oh yeah! Next thing you know would be they would probably be trying to argue that they lent you the money and you agreed to pay interest on it to them (at a nice hefty rate too).

Don't do it. 

There must be some handy law or something you can quote that states you aren't allowed to "keep it" for a while. Something along the lines of a "duty to pay the monies timeously".

They've got a nerve still trying to drag you down with them.

Keep_pedalling

-taff said:

Have you checked the insolvency register to see if the company administrating their IVA appears there?

They certainly should be on there, so a simple search should be your next move.

https://www.insolvencydirect.bis.gov.uk/eiir/

-taff

Mickey666 said:

However, it raises a wider question in my mind.  Bankrupts must surely receive money from various sources from time to time and presumably it is then their responsibility to distribute it according to whatever arrangements they have made with their creditors.

Nope, never their responsibility. It's their responsibility to pass it to the OR to distribute, not to take it on themselves to distriubte it.

naedanger

Mickey666 said:

Is it really the responsibility of someone owing a bankrupt some money to check first whether they are bankrupt? 

I don't think anyone has said that of people in general. But an executor is in a special position and has voluntarily taken on responsibilies to ensure the estate is distributed correctly. Regarding dealing with the bankrupt beneficiaries they need to be very careful. See:

https://www.barkerevanslaw.co.uk/2017/01/are-bankrupt-beneficiaries-a-risk-to-executors/#:~:text=There%20are%20statutory%20rules%20about,if%20a%20beneficiary%20is%20bankrupt.

or 
https://www.hughjames.com/blog/bankrupt-beneficiaries

Unfair or not, the executor does have additional responisibilities. No-one is forced to be an executor, and it is important if they choose to take on the role they do it properly. (That said I do have sympathy for executors who find themselves in difficult situations despite acting honestly and with reasonable care and common sense. However the op is aware of the risks and therefore reasonable care would suggest either getting legal advice or doing sufficient research themselves to be sure that what they are doing is strictly correct.)

And I would be amazed if paying out by cheque reduced the executor's potential liabilities. Otherwise that would be a well promoted means of distributing inheritances.

MoneySeeker1

Am guessing the cheque suggestion was to ensure OP has proof they paid the "person" concerned. More to the point - officialdom having proof that person had received some money? (Don't know how much money we are talking about here - a few hundreds the person concerned might think they could take as untraceable cash or loadsa money?).

Manxman_in_exile

Niall02 said:

Hi all, Just an update one of the beneficiary is now not responding to me. Their last interaction was that they stated "I can keep the money for 4 years and hung up." Basically until their IVA is up.

So what do I do now? How long am I legally allowed to keep their money for if they do not want it? 6 months a year, 4 years?

If this is the same beneficiary as before, is there a reason you can't do what Owain_Moneysaver suggested in the post before yours?

You probably ought to have got legal advice before this point anyway.