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QLD Bankruptcy - How Do I Delay the Claim of My Inheritance?

Discussion in 'Debt and Bankruptcy Law Forum' started by Arlyansor, 23 December 2015.

  1. Arlyansor

    Arlyansor Member

    23 December 2015
    Likes Received:
    Hi All,

    I declared bankruptcy in August of 2013. The bankruptcy was for approx $49K, half of which was a secured loan for a motor vehicle, which was surrendered to the bank for resale (though the bank has not advised what amount it was sold for.)

    In July of 2015, my father passed away, naming me as one of three beneficiaries of his will. The rough figure for my part of the inheritance is $190K, all cash, no property.

    The will has passed probate and all and is due for distribution in late January 2016.

    Now, my questions are these:

    1. What options, if any, do I have to delay receipt of the inheritance until my bankruptcy is discharged?

    2. Can anyone inform me what sort of fees, charges, interest or what I may be up for?

    My reading of the ASFA fees page implies I could be up for nearly the same amount as the bankruptcy itself, and that's enough to make me cry...
  2. Sophea

    Sophea Guest

    Dear Arlyansor,

    If you inherit property as a bankrupt on or after your date of bankruptcy but before you are discharged, then your inheritance is considered to be "after acquired property" and will vest in your trustee in bankruptcy, even if the estate has not been fully administered by the time you are discharged. This can be avoided by the will maker by excluding ‘at risk’ persons from a Will (e.g. bequeathing their inheritance to their spouse or children instead) or preparing a testamentary trust will. This will protect assets from the trustee. Unless you can somehow have your inheritance held on trust until after you are discharged, you will lose your inheritance to your creditors.

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