The legal issues for Executors and Administrators of bankrupt Deceased Estates
What is a bankrupt deceased estate?
When the debts of a deceased person exceed the person's assets, the deceased estate is insolvent. It is possible to administer the deceased estate by a grant of probate, or under the Bankruptcy Act 1966 (where a debt exceeds the minimum amount).
What are the risks for Executors and Administrators of managing an estate?
In WA, Executors and Administrators can be personally liable to the estate, including for:
How can Executors and Administrators protect themselves?
Provided an Executor or Administrator complies with the advertising requirements of section 63 of the Trustees Act 1962, the Executor or Administrator can obtain protection against claims where notice has not been given to the Administrator.
It is advisable to obtain legal advice in relation to bankrupt estates before lodging an application for a grant of probate or a grant of letters of administration.