Receiver v Executor

[learnwell]

In a case where the estate of a deceased person, (a sole trader) is stated to be insolvent and the bank of fund holding the loans appoint a receiver, does the receiver then take precedence
over the executor named in the will in relation to applying for probate and administration of the
estate?

Secondly, if there are properties (outside the family home) which were not used as collateral for the original loans and these properties are the subject of specific bequests in the
will, do these bequests remain valid, or must the properties in question be included in the in the remit of the receiver and be used in the clearing of the debt of the estate?

 

[Jim Stafford]

This is an area where expert advice should be obtained, as a review of facility letters and mortgages should be carried out. There are complex legislative provisions on Statute of Limitations that apply to estates.

A Receiver to a specific asset would take precedence to an Executor.

If the sales proceeds of the property does not discharge the debt, then, if there is no Executor appointed, the bank could appoint an Administrator ad item so that it could issue proceedings against the estate.

If an Executor is appointed, and the estate is insolvent, then the Executor must apply the bankruptcy rules.

Jim Stafford