5163LAW Study Guide - Final Guide: Bona Vacantia, Gift (Law), Relationship Register
Document Summary
If the estate is insolvent, the debts of the deceased are dealt with in accordance with the bankruptcy. Act 1966 (cth): the administration of the estate is taken out of the hands of the personal representatives because in bankruptcy the assets vest in the trustee. If the bankrupt dies before they have been discharged from bankruptcy, then the proceedings will continue as if they were alive: the minimum amount of debt the bankrupt is allowed to accrue before they become bankrupt is . Class 1 assets are to be used to discharge debts first and then classes 2, 3 and 4 respectively. Class 1 property designated by the testator for the payment of debts. If both, the properties will be charged ratably: s 59(2) I leave my block of land at 22 acre street, wooloowin, on trust to my brother jack, to pay all my debts.
