Inheritance and IVA

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Grahamdp92

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Post by Grahamdp92 » Tue Aug 28, 2018 5:43 pm
Hi could you please advise dad died November 2017 iv a finished 2nd January probate just be proven not been confirmed inheritance yet does it have to go into iva

MerlinL14

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Post by MerlinL14 » Tue Aug 28, 2018 5:51 pm
If you have your certificate of completion then any windfall or inheritance will go to you. Unfortunately if you don't then the supervisor of the will have to carry out an insolvency search and this will instigate them contacting your IP to hand the monies over to them.
Last Payment made 04/12/14. Completion Certificate 25/7/15. IVA company GT. No Issues

Foggy

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Post by Foggy » Tue Aug 28, 2018 5:52 pm
This is a sticky one, I am afraid. The IVA terms say that inheritances to which you become entitled to during the life of the IVA (that is before the issue of the completion certificate) are payable into the IVA. And I imagine many IP's will consider the date of passing as the pertinent date.

I would argue that, as an estate cannot be dealt with until probate has been granted and no-one is entitled to receive any bequest until that time, that the pertinent date is the date probate or letters of administration are granted.

Unfortunately, as far as I am aware, there is no definition for this in the terms and conditions and it will fall to your IP's interpretation and your, or your solicitor's, powers of persuasion.

I shall make further enquiries. Edit : Definition found and the pertinent date is the date of passing ... details posted below
My opinions are merely that .. opinions based on experience. Always seek professional advice.
IVA Completed 23rd July 2013 .... C.C. 10th January 2014
http://foggy.blogs.iva.co.uk

Foggy

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Post by Foggy » Tue Aug 28, 2018 7:02 pm
So far it seems the date of passing is the pertinent date -- though I still cannot find any definitive guidance either way.
My opinions are merely that .. opinions based on experience. Always seek professional advice.
IVA Completed 23rd July 2013 .... C.C. 10th January 2014
http://foggy.blogs.iva.co.uk

Dawndc28

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Post by Dawndc28 » Tue Aug 28, 2018 7:03 pm
May I ask a question about this - if an IVA company does not comply with the 6 months admin time to close an IVA following final payment and an inheritance / windfall happens following that allocated admin time would this still be due to the IVA - this suggests that companies can increase their chances of receiving a windfall by being inefficient and breaking their own terms and conditions which seems wholly unfair ??

Dawndc28

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Post by Dawndc28 » Tue Aug 28, 2018 7:11 pm
Dawndc28 wrote:
May I ask a question about this - if an IVA company does not comply with the 6 months admin time to close an IVA following final payment and an inheritance / windfall happens following that allocated admin time would this still be due to the IVA - this suggests that companies can increase their chances of receiving a windfall by being inefficient and breaking their own terms and conditions which seems wholly unfair ??


Ps I understand that's not what happened here and also this seems unfair :(

Foggy

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Post by Foggy » Tue Aug 28, 2018 7:15 pm
Dawndc28 wrote:
May I ask a question about this - if an IVA company does not comply with the 6 months admin time to close an IVA following final payment and an inheritance / windfall happens following that allocated admin time would this still be due to the IVA - this suggests that companies can increase their chances of receiving a windfall by being inefficient and breaking their own terms and conditions which seems wholly unfair ??
Technically, yes. The six months can be extended, under the agreed terms, twice, by prior notice; once by 6 months and once by 3 months.

We can only complain about such things to the firms regulatory body. The regulators will only slap a wrist or issue a fine --- the complainant will get no mediation or recompense. Nor will the regulators interfere with the actions of an IP.
My opinions are merely that .. opinions based on experience. Always seek professional advice.
IVA Completed 23rd July 2013 .... C.C. 10th January 2014
http://foggy.blogs.iva.co.uk

Foggy

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Post by Foggy » Wed Aug 29, 2018 8:06 am
Thanks to our good friends over on Debt Camel I have been informed that the date of passing is the pertinent date, as defined in the Insolvency Service Technical Manual for Bankruptcy.

it's 31.8.37 here https://www.insolvencydirect.bis.gov.uk ... rt%203.htm for bankruptcy:

"The key date in this respect is the date of the death of the person who made the will. So long as the person dies prior to the bankrupt’s discharge, the property bequeathed can be claimed even where it is not received by the bankrupt until after his/her discharge. "


and the same principle would be applied to DROs and IVAs as well.
My opinions are merely that .. opinions based on experience. Always seek professional advice.
IVA Completed 23rd July 2013 .... C.C. 10th January 2014
http://foggy.blogs.iva.co.uk

Lisa Thomas

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Post by Lisa Thomas » Wed Aug 29, 2018 8:22 am
Thank you for clarifying Foggy.

Dawn - I have heard of this happening last year and the debtors solicitors had to argue that it was only down to the poor conduct of the Supervisor not closing the case diligently that the windfall fell into the IVA.

Circumstances were a little extreme but they reached a compromise in the end.
I'm a licensed IP with 16+ yrs at Neville & Co covering the South West area. I have a YouTube channel with advisory videos on here: https://www.youtube.com/channel/UCMPTTu ... Z5k9ZcC2MA http://www.nevilleco.co.uk 01752 786800 Lisa@nevilleco.co.uk
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