Bankcruptcy/IVA

RAS

In one of your threads, you suggested that you don't see much of this son? But really you need to talk to him directly, so you understand exactly what the implications are of his liquidation. 

I doubt there's a millionaire business person in this country who hasn't done a CVL at some point. The whole point of limited companies is that the director's personal assets aren't at risk. Obviously if he'd personally guaranteed loans, that's a different issue.

But I think you've not so much got hold of the wrong end of the stick, as got hold of the wrong stick. 

Please speak to him, and if you don't feel you can do that, speak to another family member who can talk to him directly and find out the situation.

castle96

I'm not sure he understands his CVL. I certainly don't. I struggle to find 'hard and fast' rules. It seems? if I leave him 1/3 of my estate it will be 'forfietable' to his CVL. Would he tell them he has £n COMING? mY SISTER IS eXECUTOR AND PROBABLY WOULD! I will ask again to see his paperwork, but I doubt he will show it. It seems the only option I have is to cut him out of my/from my parents, money...

I am sure he has more than 1 x bank account (We all have). Whatever a/c he has declared to the Practioner, would nt see an amount paid into it!

RAS

The whole point about limited companies and a CVL is the directors are NOT responsible for the debts of the company. So it has little impact on their personal finances.

There are exceptions; overdrawn directors loan accounts, personal guarantees, wrongful trading and trading whilst insolvent can all lead to a director having to repay money to the creditors as directed by the Insolvency Practitioner. But once the IP's investigation is completed, it would be clear whether your son has any further liability, or whether he'd been disqualified. 

None of us can see information about any liabilities, so you need to find out from him.

But you can check the disqualified directors list at Companies House, to find out if he's listed.

Marcon

Billxx said:

I am not certain but I imagine the solicitor is making sure that the beneficiaries will actually get the money.  If a cheque was paid into an account associated with a bankrupt, and it owed money to the bank, the bank could take it.  So I think they are doing this to protect the beneficiaries.

Others with more expertise may have a different view.

Good explanation here of bankruptcy and inheritances: https://www.thegazette.co.uk/all-notices/content/103862

Keep_pedalling

Just leave everything split 3 ways and let them waste their share in any way they chose. Anything else is just likely to cause problems between between your children which is a lot worse than what eventually may happen with your money which is no use to you once you are dead.

RAS

The OP's son isn't bankrupt as far as he knows.

castle96

Keep_pedalling said:

Just leave everything split 3 ways and let them waste their share in any way they chose. Anything else is just likely to cause problems between between your children which is a lot worse than what eventually may happen with your money which is no use to you once you are dead.

The whole point is I dont want my/parents money wasted. Just need full facts/opinions, before any decision made. Not bankrupt. CVL

RAS

Have you checked on the Companies House site whether he's listed as a disqualified director? That's one of the few facts you can find.

castle96

Yes, not disqual

Keep_pedalling

So what are you going to do in 5 years time if the son of concern is now doing well, and it looks like one of the others has developed a serious gambling habit and you suspect the other one’s marriage is looking dodgy. Do you change your will to avoid your money ending up with the bookies or going on a divorce settlement? 

What happens in 10 years time when the sone of concern is sitting pretty, you have still left him out of your will but no longer have the mental capacity to make a new one?