Commentary

I5.1009 Trust income arising during bankruptcy

IHT, trusts and estates

I5.1009 Trust income arising during bankruptcy

I5.1009 Trust income arising during bankruptcy

When an individual becomes bankrupt, their property (and rights in respect of such property) vests in their trustee in bankruptcy. A trustee in bankruptcy administers and distributes the bankrupt's assets for the benefit of the bankrupt's creditors1.

Any income derived from the vested property is payable to the trustee and the bankrupt simply retains a reversion to any balance remaining after all the creditors have been satisfied.

As a consequence, neither the bankrupt nor their trustee in bankruptcy can claim personal reliefs in respect of such income2.

In addition, only the trustee in bankruptcy, and not the

To continue reading
View the latest version of this document, as well as thousands of others like it, sign in to TolleyLibrary or register for a free trial