PinkDalek wrote:"... indeed I might be under a legal duty to pay X from my inheritance (e.g. if I were an undischarged bankrupt and X was one of my creditors"In that situation I believe it would be down to you to inform the Official Receiver of the inheritance which, I think, they'll collect from the Executors. More here which should clarify
http://researchbriefings.files.parliame ... P-7321.pdf
I find that reference confusing. The way I read it, it is the bankrupt and beneficiary who has the primary responsibility to inform the bankruptcy trustee that an inheritance has been received. And that surely makes the most sense because the rule applies to any windfall that the bankrupt might receive, such as a gift or winning the lottery, where there is no executor anyway. Otherwise the implication is that nobody could ever give a bankrupt any money.
I don't read that as requiring any special action by the executor who, as noted before, is concerned with debts owed by the estate and not by the beneficiaries. That said, if an executor receives notice from a trustee that the beneficiary is a bankrupt then the executor should surely seek advice before distributing that part of the estate, to avoid the risk of being held personally liable. The key section is here:
"In practice, the named executors of a will should undertake a bankruptcy search to check whether or not there are any bankruptcy orders in place, before distributions are made to the beneficiaries. If a beneficiary is indeed bankrupt, their inheritance (or part of it) may fall due to their trustee in bankruptcy.
In any event, under the IA 1986, the bankrupt has a responsibility at all times to be honest with their trustee about their situation. An undischarged bankrupt is obliged to tell the trustee about any inheritance or windfall they receive within 28 days. If the bankrupt fails to do so, the trustee has powers to reverse any transaction if it is seen to be a measure undertaken by the bankrupt to put assets outside of the reach of his/her creditors."
To my eye, the second paragraph places the responsibility for full disclosure squarely upon the bankrupt, which is surely how it should be. And whilst I feel sure the creditors would rather just grab the money from the estate than rely on the bankrupt to be honest, it seems to me that the fundamental legal obligation here exists between the bankrupt and the trustee.