Who May Benefit From A Will? - Bankrupts

By Stan Taylor Written on:




Want to make a start on your will?

Making a will is simple

Making a Will is not about wealth it is about making sure that what you want to happen to your estate does happen. It gives you the opportunity to specify such things as who will administer your estate, who will care for your children and who will receive specific items of your property.


One of your children may have the misfortune to go bankrupt.

If so, you need to consider what to do with any gift previously intended for him or her. If you leave your will as it is, then the gift will pass to the trustee in bankruptcy and be used to clear the bankrupt's debts. If you feel your child has been irresponsible or you feel you wish to see his creditors repaid, this may suit you.

If it doesn't, you need to consider making other arrangements. Some people feel that leaving everything to the other children knowing they will take care of him is best. There are numerous reasons, including tax reasons, why this may not work.

Probably the best arrangement is to place the bankrupt's share into a trust where he never obtains an outright interest. Seek professional advice as soon as possible.

Similar considerations may well apply to potential beneficiaries who have drink or drug problems or are simply likely to squander their inheritance on online poker sites or even the local shopping mall! Remember that a trust costs money to set up and administer so the amount of money you wish to leave is a factor to consider, as is the level of problem the beneficiary has.

Perhaps you could live with your child spending �5000 on a 'booze cruise' but what about �500,000? With a trust of this type it is entirely possible for the trustee to pay funds over to the beneficiary if he or she needs them and to pay out the entire fund if recovery from addiction is achieved.


Other pages of interest - Who May Benefit From A Will? - Criminals or Who May Benefit From A Will? - Example3


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see: Making a will - The Law Society. Please note that will making differs in Scotland and this website currently deals with English laFree Will download

 

Perhaps you might consider taking legal advice from a solicitor about making a will if any of the following apply to your circumstances:

 

  1. A number of people could make a claim on your estate when you pass away because they depend on yourself financially
  2. You want to include a trust in your will (perhaps to provide for children, to save tax, or simply protect your assets in some way after you become deceased)
  3. Your physical and permanent home is not in the UK and / or you are not a British citizen
  4. You live here in the UK but you have additional property abroad
  5. You own all or part of a UK business.
  6.  

see: Making a will - The Law Society. Please note that will making differs in Scotland and this website currently deals with English law.

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