What exactly is the role of the OR?

fermi

I should say that a lot of people look at the list of reasons for misconduct that may result in a BRU/O and get very worried.

If you have done something like:

"incurred debts that you knew you had no reasonable chance of repaying"

then one is possible.

But we don't see very many on here. And to be pretty frank, those people who do get one find that it's not really a big deal in the end.

LilyBart

JCS1, how can it be that any bequest dates from the date of death? Probate can take months or years, and when property is involved, there's the time it takes to sell the property and fluctations in market value to take into consideration. Do you mean that if, say, Great Aunty Gertrude dies in day three of your bankruptcy, but her estate is not settled until two years after discharge, the money involved should then be sent to the OR?

tigerfeet2006

I am afraid that is the general idea Lily

fermi

The date of death is the date that legally the inheritance "devolves" on the bankrupts estate.

There are a few provisos though.

xi Can the trustee claim property due under a will?

The trustee can claim an interest under a will which devolves upon the bankrupt before discharge. This means that if the author of the will (the testator) dies during the period prior to discharge of the bankrupt, the trustee can generally claim property bequeathed to the bankrupt under the provisions of section 307.

However, if the will sets up a protective trust the trustee will not be able to claim any property covered by the trust for the bankrupt’s estate. A protective trust usually gives an individual a limited right over something and allows them to use it without giving the right to sell the item in question. It is most commonly used in relation to freehold or leasehold property and allows the beneficiary under the will to live in the property, usually for life, without allowing them the right of sale. Legal advice may be needed to decide whether a protective trust has been created or not.

In all cases, notice of the bankruptcy order (NORD1) must be given to the trustees/executors of the will as soon as possible. If the official receiver becomes trustee a second notice should also be sent in duplicate, with the trustees of the will being asked to return one copy receipted for the file (form NEXE).

Notwithstanding the bankruptcy order, a bankrupt retains his/her right to challenge the provisions of a will under The Inheritance (Provision for Family and Dependants) Act 1975 and the trustee plays no part in such proceedings.

LilyBart

That's terrible. I feel very much like Dalip about this. Step-mum moved into the hospice this week, not long to go now, certainly not the right time to hassle her about changing things so that the others benefit and I'm left out. I mean, I care much much much much much more about losing her than losing any money, which wouldn't even scratch the surface of our debts. Even so, there are other family members who I'm sure would welcome their percentage of what is being left to me...