Is someone to whom you have made a gift under
your will, a bankrupt or at risk of becoming a bankrupt? If so, you should be aware of the impact this
may have on your testamentary intentions and what you can do about it. I’m John Gallagher from, Argon Law, and
I want to say a bit more about bankruptcy and wills. When someone is declared a bankrupt, all of
their assets at that time and any assets they may acquire whilst they remain a bankrupt
become the property of their trustee in bankruptcy. That period usually last for 3 years. If you were to die shortly before a beneficiary
under your will becomes a bankrupt or during the 3 years they remain a bankrupt, then the
whole of the gift would vest in the trustee and be distributed amongst the creditors of
the bankrupt. If there is a substantial risk of this happening,
then you should immediately seek legal advice and change your will to remove any gift directly
to the relevant person. You can still benefit the family of that person
in your will. One way of doing so is to create a trust under
your will for the benefit of that family in such a way that there is no risk that any
part of your estate will vest in the person whilst they remain a bankrupt. Good estate planning will take bankruptcy
risks into consideration, so please speak to your legal advisor or call us if you have
any questions in that regard. And if you found that useful and would like
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