My other-half has sadly just lost an aunt and has heard that he may be receiving an inheritance. He is due to declare bankruptcy any day now! The inheritance may be significant but not half of what he owes. I understand that you can vary the terms of the inheritance and 'gift' the money to a relative. If he were to vary the inheritance so that his children receive the money rather than himself would this be deemed to be disposing of an asset or would it never have been an asset of his?? Any thoughts?
Personally, I would think that it would be seen as disposing of an asset.
If the aunt were still alive she could vary her will to leave the money to the children, but as she is sadly deceased and the money has been left to him, then I think he will need to pay this across.
Hopefully one of the experts will be along to confirm or otherwise.
The OR will want to know about this and any other income/windfalls received and what you have done with them. Legally the money is now his so if he 'gifts' it to his children then it would be seen as disposing of an asset.
You mentioned that the money wouldn't cover half his debts but would it allow him to delay the BR proceedings or look for another option to resolve his credit issues?
I know that he would be set in his mind to declare BR but there may be better solutions now that he could clear part of his debt. Maybe some of the creditors would accept a full + final payment lower than the outstanding amount?
The inheritance will end up going to the creditors anyway so he might as well try to use it to assist with his debts and maybe not have to declare BR at the moment or maybe at all.
Inheritance
Posted - 07 June 2009 : 22:14:09
