Help with a bankrupt please

Trusts Discussion
1

Hi

I wonder if anyone would be prepared to give me their thoughts.

I am trustee of a trust which owns a quarter share of a property which is currently occupied by a divorced lady and her children. The value is substantial.

The woman has been married and divorced twice and has recently become engaged again. Her new partner has moved into the property.

The Trust was originally set up under the terms of the woman’s first divorce, to ensure that the quarter share would always pass to her children and not go to any future spouse/partner. This was an essential stipulation made by her ex-husband to ensure that his children ultimately would benefit. The rest of the property (75%) is mortgaged.

The trustees have recently been informed that the new fiancé was made bankrupt about a month ago. We are now concerned over his position and whether this could threaten the Trust or the children ultimately benefiting.

The bankruptcy is the key concern.

Any thoughts would be gratefully appreciated.

Jonathan Lee
Jonathan Lee Consultancy

2

So long as the trustees have protected themselves by entering on the register either themselves as joint owners, or a notice or caution or restriction there should be no danger from the fiancé’s bankruptcy. He isn’t even on the title.

If they haven’t already done so, they should do so pdq.

Julian Cohen, Solicitor