Bankrupt beneficiaries

Personal representatives who make a distribution out of the estate of a deceased person to a bankrupt beneficiary may be making the distribution to the wrong person, and, if so, will not receive a good receipt.

In such cases, if the bankrupt puts the assets beyond the reach of the trustee in bankruptcy, there is a real risk that the trustee in bankruptcy, on behalf of the bankrupt's creditors, will claim compensation against the personal representatives.

Bankrupt beneficiaries - 15 September 2011