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Inheritance In Trust Taken By Trustee In Bankruptcy

Bankruptcy

A bankruptcy can over ride an inheritance, even when the inheritance is left in trust as per Bolt Estate 2014 BCSC 2095

 

A trust in a will provided that the un discharged bankrupt heir,  was to receive 1/4 of the capital at 26, the 1/4 at 35, and the balance at age 45 .

 

The bankrupt and the trustee argued over whether the trust fund could be attacked by the trustee in bankruptcy and the court found that it could be.

 

The court held that the inheritance constituted “property” vesting in her estate in bankruptcy within the meaning of Section 2 of the Bankruptcy and Insolvency act, so that the inheritance was avaialbe to her creditors.

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