united-kingdom

You can do it, but the creditors can apply to court to unwind the transaction and recover the money from the heirs under the Insolvency Act 1986.

Section 339:

(1) Subject as follows in this section and sections 341 and 342, where an individual is made bankrupt and he has at a relevant time (defined in section 341) entered into a transaction with any person at an undervalue, the trustee of the bankrupt’s estate may apply to the court for an order under this section.

(2) The court shall, on such an application, make such order as it thinks fit for restoring the position to what it would have been if that individual had not entered into that transaction.

(3) For the purposes of this section and sections 341 and 342, an individual enters into a transaction with a person at an undervalue if — (a) he makes a gift to that person or he otherwise enters into a transaction with that person on terms that provide for him to receive no consideration, [...], or (c) he enters into a transaction with that person for a consideration the value of which, in money or money’s worth, is significantly less than the value, in money or money’s worth, of the consideration provided by the individual.

The "relevant time" of the transactions is defined at Section 341. There are two applicable time periods. Within 2 years prior to the bankruptcy application, any transaction can be unwound. Within 2-5 years prior, a transaction can be unwound but only if the now-bankrupt person was either insolvent at the time of the transaction or the transaction itself made them insolvent.

"Insolvent" means either that you are unable to pay your debts as they fall due (cash flow insolvency) or that the value of your assets is less than the value of your liabilities (balance sheet insolvency).

england-and-wales

You can do it, but the creditors can apply to court to unwind the transaction and recover the money from the heirs under the Insolvency Act 1986.

Section 339:

(1) Subject as follows in this section and sections 341 and 342, where an individual is made bankrupt and he has at a relevant time (defined in section 341) entered into a transaction with any person at an undervalue, the trustee of the bankrupt’s estate may apply to the court for an order under this section.

(2) The court shall, on such an application, make such order as it thinks fit for restoring the position to what it would have been if that individual had not entered into that transaction.

(3) For the purposes of this section and sections 341 and 342, an individual enters into a transaction with a person at an undervalue if — (a) he makes a gift to that person or he otherwise enters into a transaction with that person on terms that provide for him to receive no consideration, [...], or (c) he enters into a transaction with that person for a consideration the value of which, in money or money’s worth, is significantly less than the value, in money or money’s worth, of the consideration provided by the individual.

The "relevant time" of the transactions is defined at Section 341. There are two applicable time periods. Within 2 years prior to the bankruptcy application, any transaction can be unwound. Within 2-5 years prior, a transaction can be unwound but only if the now-bankrupt person was either insolvent at the time of the transaction or the transaction itself made them insolvent.

"Insolvent" means either that you are unable to pay your debts as they fall due (cash flow insolvency) or that the value of your assets is less than the value of your liabilities (balance sheet insolvency).

You can do it, but the creditors can apply to court to unwind the transaction and recover the money from the heirs under the Insolvency Act 1986.

Section 339:

(1) Subject as follows in this section and sections 341 and 342, where an individual is made bankrupt and he has at a relevant time (defined in section 341) entered into a transaction with any person at an undervalue, the trustee of the bankrupt’s estate may apply to the court for an order under this section.

(2) The court shall, on such an application, make such order as it thinks fit for restoring the position to what it would have been if that individual had not entered into that transaction.

(3) For the purposes of this section and sections 341 and 342, an individual enters into a transaction with a person at an undervalue if — (a) he makes a gift to that person or he otherwise enters into a transaction with that person on terms that provide for him to receive no consideration, [...], or (c) he enters into a transaction with that person for a consideration the value of which, in money or money’s worth, is significantly less than the value, in money or money’s worth, of the consideration provided by the individual.

The "relevant time" of the transactions is defined at Section 341. There are two applicable time periods. Within 2 years prior to the bankruptcy application, any transaction can be unwound. Within 2-5 years prior, a transaction can be unwound but only if the now-bankrupt person was either insolvent at the time of the transaction or the transaction itself made them insolvent.

"Insolvent" means either that you are unable to pay your debts as they fall due (cash flow insolvency) or that the value of your assets is less than the value of your liabilities (balance sheet insolvency).

united-kingdom

You can do it, but the creditors can apply to court to unwind the transaction and recover the money from the heirs under the Insolvency Act 1986.

Section 339:

(1) Subject as follows in this section and sections 341 and 342, where an individual is made bankrupt and he has at a relevant time (defined in section 341) entered into a transaction with any person at an undervalue, the trustee of the bankrupt’s estate may apply to the court for an order under this section.

(2) The court shall, on such an application, make such order as it thinks fit for restoring the position to what it would have been if that individual had not entered into that transaction.

(3) For the purposes of this section and sections 341 and 342, an individual enters into a transaction with a person at an undervalue if — (a) he makes a gift to that person or he otherwise enters into a transaction with that person on terms that provide for him to receive no consideration, [...], or (c) he enters into a transaction with that person for a consideration the value of which, in money or money’s worth, is significantly less than the value, in money or money’s worth, of the consideration provided by the individual.

The "relevant time" of the transactions is defined at Section 341. There are two applicable time periods. Within 2 years prior to the bankruptcy application, any transaction can be unwound. Within 2-5 years prior, a transaction can be unwound but only if the now-bankrupt person was either insolvent at the time of the transaction or the transaction itself made them insolvent.

"Insolvent" means either that you are unable to pay your debts as they fall due (cash flow insolvency) or that the value of your assets is less than the value of your liabilities (balance sheet insolvency).