Rules on Gifts

Any gift made within 2 years of being adjudged bankrupt can be cancelled, even if the person was solvent at the time the gift was made and the gift was not made with the intention of defeating creditors.

2. Where a person was unable to pay their debts at the time of gift, any gift can be cancelled for up to 5 years.

dollar1. Any gift made within 2 years of being adjudged bankrupt can be cancelled, even if the person was solvent at the time the gift was made and the gift was not made with the intention of defeating creditors.

2. Where a person was unable to pay their debts at the time of gift, any gift can be cancelled for up to 5 years.

3. If the gift was made with the intention of defeating creditors there is no limit to the period in which a gift can be cancelled.

Given the substantial penalties to be applied under the new Health and Safety rules from 1 April 2016 and the fact you cannot insure against these penalties, any person who has potential liability under the Health & Safety legislation should consider transferring all their (major) assets to a trust. If you intend to do this you need to do so ASAP as the 2 year cancellation period means any asset gifted after 1 April 2014 is at risk, until 2 years after the date of the gift.

Author: Peter Forrest