If you have a substantial inheritance coming down the line, you should be more motivated to do an "accelerated" PIA, as you could possibly lose all of the inheritance if creditors obtain judgment against you in the future. Alternatively, you could adopt different strategies such as using trusts etcIf you are at any time concerned about inheritance (particularly if it is substantial), you are better off avoiding a PIA?
CorrectThank you Jim. I believe your reply contains the answer to my question. But to clarify, are you saying that once the PIA has been successfully completed (whatever the duration), and where the PIA involves a write down, that the lender will not be able to make a claim against any future inheritance?
Correct, with a time limit of 20 years.My take is that if you sell the PPR for a "profit" after completion of the PIA, the lender can "claw back" the surplus, to the value of the amount owed prior to the write down under the PIA.
If you inherit property, the lender can "claw back" the value of the amount owed prior to write down under the PIA.
Hi, We are in the process of a PIA and my parents are elderly, I would be due ineritence, hopefully not within the PIA term, but if this does happen. Can i set up a trust in my kids name with any inheritance recieved? It has been a long road here and alot of Debt i would hate to lose my parents life earnings over our debt issues. There home would also be part of inheritance. Would really appreciate help here. TIA
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