Inheritance

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lee949

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Post by lee949 » Sat Feb 08, 2020 4:20 pm
Hi I started my iva on the 5/8/2019 my grandad passed away on the 9/2/2019 before I signed my iva will I need to pay them all of my inheritance I did not know I would be inheriting anything as o only actually received a will letter from solicitor a few months if been looking about online but no were has giving me a arnser in a situation like this

Foggy

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Post by Foggy » Sat Feb 08, 2020 5:22 pm
I would imagine that any inheritance will be due to be passed to your creditors if of any significance. Although your grandfather passed before you started the IVA you are getting the inheritance now, while in the arrangement. It is an after acquired asset.
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

lee949

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Post by lee949 » Sat Feb 08, 2020 5:28 pm
Hi thanks for the fast reply but then if I was 5 and a half years into my 6 year iva and I received the inheritance after the 6 year would that mean they would not take any for my creditors? I bet they would say as I received a letter saying I was receiving inheritance they would also claim it aswell I ha e looked online and it states that as my inheritance starts when my grandad passed that should be the date as it's been 14 months already and the assets are still being sorted out

Foggy

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Post by Foggy » Sat Feb 08, 2020 5:36 pm
If your grandfather passed while you were near the end of the IVA, yes they would still claim the inheritance then --- because you become, on paper (which I do not agree with) the owner of the inheritance on the donor's death, even if you don't know about it ! So, in this case, you became the owner of the inheritance before your IVA started ---- if you had it and spent it before the IVA started they would not have it --- but you didn't, you are getting it sometime soon. if you had it and it was sat in your bank account when you started the IVA they would have it then as an asset.
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

lee949

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Post by lee949 » Sat Feb 08, 2020 5:49 pm
I think under my agreement I need to give 50% of anything over 500 so will need to wait and see what I get and see hm they will take seems slightly unfair they will expect it even know I was technically left it before I even signed up to the iva theres no way around it aswell even know I only inheritance 6.25% of my grandads large estate due to my mother passing away about 5 years back and that her 25% between her and her 3 brothers but I also have 2 sisters and 1 brother so that's were I am getting the % of it

Foggy

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Post by Foggy » Sat Feb 08, 2020 6:36 pm
The 50% refers to earned income ( overtime, bonus payments etc. ) whatever they are and not those over £500. The inheritance will fall under the windfall clause which is where you have got this £500 from. In this clause any windfall (unexpected income like a lottery win, insurance payout or inheritance), if the windfall is over £500 is payable in full. So,if the windfall is £499 you keep it all, if it is £501 you pay it all in.
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

lee949

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Post by lee949 » Sun Feb 09, 2020 7:06 pm
Is there anyway I can gift it to a family member as it was not left to me in the will it's been giving to me due to my mother not being alive anymore and it was originally left to her?

Foggy

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Post by Foggy » Sun Feb 09, 2020 7:24 pm
If it has not been left to you, I would suggest whoever it has been left to holds on to it. So, you have been left nothing and you are getting nothing.

Maybe they would be so kind as to fund a full and final offer to close the IVA for you ( based on outstanding payments ). After the IVA has finished what they decide to do with the inheritance will be of no concern.

You cannot gift it away if it gets given to you or has been left to you in the will. Once yours it will belong to the IVA.

All that said, check the wording of the will carefully. My will leaves my estate to my children but stipulates that, if any of my children die within 28 days of my death, then their share is to be shared by their children (which is, essentially what is happening in your case). It is a pretty standard clause in a will. If your brandfather's will has this, or a similar clause, it will be subject to the IVA and cannot be 'gifted away'.
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

lee949

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Joined: Sat Feb 08, 2020 4:20 pm

Post by lee949 » Sun Feb 09, 2020 8:12 pm
My mum passed away about 8 years ago and my grandad about 1 year back I have 2 sisters and 1 brother and we are receiving 1000 cash and 6.25% I haven't seen the will but my mum had 3 brothers so it's being guessed my grandad still had her in the will and us 4 are inheriting her 25% it's been 14 months since his death so its taking a long time to sort out his entire estate it will most defently cover the 15000 in the iva I'm just not happy that it was left to me when I was not I the iva but due to the size of the estate it's taking such a long time to sort out
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