my mum and dad have been to see a solicitor about doing a trust fund on their house.This means that we would own the house along with my brother but until anything happened to my mum and dad we couldn't touch the house.MY Parents want to go ahead with this but they mentioned that part of the fee to the solicitor was to check that we had never been bankrupt. Really worried that the iva will effect this . My mum and dad don't know about the iva and we really don't want to tell them if we can help it. Will the IVA be seen the same as bankruptcy?
If you are in an IVA you are not bankrupt but you are on the Insolvency Register. Don't know if this wll make a difference for a solicitor check.
Hopefully nothing will happen to them whilst you are in your IVA.
Sharing from experiences of dealing with debt
The greatness of a man is not in how much wealth he acquires, but in his integrity and his ability to affect those around him positively.
Bob Marley. http://kallis3.blogs.iva.co.uk
its likely they will find out,if they do leave you anything it will have to go in your windfall clause.the solicitors/trustees will probably look at the beneficiaries,so protecting the best interests of your parents.your parents will probably need to set up a discretionary trust stating that they only want their children to benefit from the legacy of the family home and no allowance shall be made for creditors.(they will probably not want their hard earned house going to them),you will however probably have to adhere to their wishes as you will not directly"own" the house,you will be a beneficiary.
A chat with the IP is definitely in order so that you can see where you stand with them.
I think that a windfall will have to be paid across but it is something to speak to them about.
Sharing from experiences of dealing with debt
The greatness of a man is not in how much wealth he acquires, but in his integrity and his ability to affect those around him positively.
Bob Marley. http://kallis3.blogs.iva.co.uk
HI thanks all for the replies
I have mailed my ip and also told the solicitor dealing with the trust. I am waiting for both to get back to me
I am not concerned really about what would happen to the money from the property as hopefully my parents will live way beyond the iVA ( 3 YEARS LEFT) my major concerns were if we would be allowed to enter into the trust while in an iva and that the creditors would not be able to touch the house while my parents were still alive. Hopefully the solicitor will be able to clear these up - cheers
