Woman allegedly transferred inheritance to son to avoid paying debts

Barbara Bentley, 59, was declared bankrupt on March 24, 2017, after she submitted an online application the day before, Ipswich Crown Court heard.

In the application, Bentley said she was unable to pay debts totalling more than £27,000 to Babergh District Council and the Department for Work and Pensions (DWP) for benefit overpayments and council tax arrears.

On the opening day of the trial, Leila Chaker, prosecuting the case for the Insolvency Service, told the jury that ten days prior to the application being submitted - on March 13 - Bentley had transferred £75,000 to a bank account in the name of her son, Robson.

The court heard that Bentley had received an £80,769 inheritance in 2014 following the death of an aunt in Ontario, Canada, in May 2011, who did not leave a will.

When the Insolvency Service contacted Bentley about the money transfer, she told investigators she had been advised by Citizens Advice to do so.

She said the money was bequeathed to her son and she was holding it in her account.

The court heard that Bentley told investigators: "My son opened a new account so I could transfer his money."

Bentley owed £11,786 to Babergh District Council for housing benefit overpayment, and a further £3,600 to the authority for council tax arrears, the court heard.

She also owed £11,539 to the DWP for job seekers' allowance benefit overpayment.

Her debts to Babergh District Council were written off while the debt of £11,539 to the DWP was paid back in September 2017, the court heard.

Ms Chaker said it is the prosecution case that the money belonged to Bentley and she acted dishonestly.

"Documents show, the prosecution say, that she knew that to be the case," Ms Chaker told the jury.

Bentley, of Yeoman Crescent, Hadleigh, has pleaded not guilty to fraudulently disposing of property by making a gift while declared bankrupt.

The trial, which is expected to last two to three days, continues.