Collecting and realising assets Flashcards
1
Q
ο»Ώ1. Estate Creditors
A
PRs must pay estate creditors before distributing the estate.
2
Q
- Sale of Specifically Gifted Property
A
PRs should not sell property specifically gifted in the will to pay debts unless other assets have been exhausted.
3
Q
- Payment of Unsecured Creditors
A
Order of Payment:
4
Q
- Payment of Unsecured Creditors
A
- Property undisposed of by the will.
5
Q
- Payment of Unsecured Creditors
A
- Residue.
6
Q
- Payment of Unsecured Creditors
A
- If the will specifies debts should not be paid from the residue, debts are paid in the following order:
7
Q
- Payment of Unsecured Creditors
A
i. Property specifically provided for debt payment.
8
Q
- Payment of Unsecured Creditors
A
ii. Pecuniary legacies (which abate proportionately).
9
Q
- Payment of Unsecured Creditors
A
iii. Specifically devised or bequeathed property (proportional).
10
Q
- Payment of Unsecured Creditors
A
- Mortgages on gifted property are paid from the residue if specified as βfree of mortgageβ.
11
Q
- Payment in Insolvent Estates
A
Order of Payment:
12
Q
- Payment in Insolvent Estates
A
1.Secured Debts: From the property against which the debt is secured, unless the will specifies otherwise.
13
Q
- Payment in Insolvent Estates
A
2.Unsecured Debts:
14
Q
- Payment in Insolvent Estates
A
- Reasonable funeral and administration expenses.
15
Q
- Payment in Insolvent Estates
A
- Preferred debts (e.g., wages/salaries up to Β£800).
