Inheritance and IVA

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jon368

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Post by jon368 » Thu Jan 24, 2019 4:50 pm
Hi I'm getting very worried as I'm getting close to my 4 year on an Iva , I have my own home & still paying a mortgage on , my mother also owns her own home but is getting very ill & it will be left to me and my sister , what will happen to me in an Iva when this sad day happens? With thanks

kallis3

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Post by kallis3 » Thu Jan 24, 2019 4:59 pm
Sorry to hear this - any chance your mother can put your inheritance into trust so it can't be touched until after your IVA has finished?
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Foggy

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Post by Foggy » Thu Jan 24, 2019 5:01 pm
If she sadly passes within the next couple of years ( you might get an extension instead of equity release ) her house would need to be sold and your share paid over to your creditors. How much they take will depend on the amount outstanding from the full original debt.

If you trust your sister enough and mum is willing, she could write you out of the will now and leave the whole house to your sister. If your sister decides to give you half the money in a few years (after your IVA has finished) that is her prerogative.
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

jon368

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Post by jon368 » Thu Jan 24, 2019 5:27 pm
kallis3 wrote:
Sorry to hear this - any chance your mother can put your inheritance into trust so it can't be touched until after your IVA has finished?
Hi there & thank you for your response, how do I go about putting this into a trust and will the Iva get to know about this to carry me on longer ? With thanks

luluj

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Post by luluj » Thu Jan 24, 2019 5:29 pm
Foggy explains it well ... it seems harsh but if your sister and mother are willing then it is one way to go.

I inherited during my iva and we paid the balance of our original debt and IP fees through a full and final offer that excluded the statutory interest element. That potentially is another option to put to your creditors.
Sharing from experiences of dealing with debt

There is a solution for everyone .... Just need to stay positive !

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Foggy

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Post by Foggy » Thu Jan 24, 2019 7:05 pm
jon368 wrote:
kallis3 wrote:
Sorry to hear this - any chance your mother can put your inheritance into trust so it can't be touched until after your IVA has finished?
Hi there & thank you for your response, how do I go about putting this into a trust and will the Iva get to know about this to carry me on longer ? With thanks
You would need qualified advice and get a solicitor to add this into the will if it is already drawn, as a codicil. Or to include it if drawing up the will now. What you are after is an "Insolvency clause" basically saying that the inheritance of any benificiary who is insolvent will be held in trust until they are released from their IVA or Bankruptcy. Don't make it specific to you, as this would indicate that it is there specifically to defeat your current IVA. You only need advise your IP if and when you become entitled to receive your inheritance during your IVA.
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
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