Investments on Behalf of Sisters
My sister-in-law will be declaring personal bankruptcy shortly. In 2000, two of her sisters had each given her $1,500 to invest on their behalf due to her investment knowledge at the time. My sister-in-law kept track of the various equities that she purchased and sold on their behalf. None of the shares are still being held. The $3,000 in total invested grew to $3,900. My sister-in-law currently has about $8,000 of cash on hand including this $3,900. She currently lives in Ontario but lived in Alberta until Nov. 1 of this year.
Can this $3,900 be paid back to her sisters before declaring bankrutcy (as it is their money) without the risk that she would need to reverse the payback and ask for the money back from her sisters?
The debts that are owed are credit card debts. Other than the $8,000 on hand, my sister-in-law has no other assets.
Thank you for your response.
The key to this will likely be documentation. If the property held in trust is documented and your sister in law can clearly demonstrate the funds came from others and simply held on their behalf then it is possible that the trust property will be able to be returned.
The best thing to do is to contact a trustee locally and see what they would require to demonstrate that it is in fact trust property.