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Hello,

My Mother and Father in-law went banckrupt a month ago . They have a surps pension private that they can cash in about £10,000 will this be taken off them from O/R . As i thought that they can't touch your private pension.

Thanks

Hi Matthew,

Not sure about this one - hopefully one of the experts will be able to help.

Yes - the trustee can claim the tax free lump sum if it is drawn down, so they ought to take advice from an independent financial advisor as to their options.

Also, a recent legal case has indicated that a Trustee in bankruptcy can compel a bankrupt to draw down monies from a pension fund if they become entitled to it during the period prior to discharge.

Thank you . this is not a tax free withdraw they have to pay tax on it. So you think they shouldn't with draw this as it could be taken away.

I think that they need to be very careful, and seek advice before effecting any drawdown.