SUCCESSION ACT 1981 - SECT 58
Retainer, preference and the payment of debts by personal representatives
SUCCESSION ACT 1981 - SECT 58
Retainer, preference and the payment of debts by personal representatives
58 Retainer, preference and the payment of debts by personal representatives
(1) The right of retainer of a personal representative and the personal
representative’s right to prefer creditors are hereby abolished.
(2)
Nevertheless a personal representative—
(a) other than one mentioned in
paragraph (b) , who, in good faith and at a time when the personal
representative has no reason to believe that the deceased’s estate is
insolvent, pays the debt of any person (including himself or herself) who is a
creditor of the estate; or
(b) to whom letters of administration have been
granted solely by reason of the personal representative being a creditor and
who, in good faith and at such a time pays the debt of another person who is a
creditor of the estate;
shall not, if it subsequently appears that the estate
is insolvent, be liable to account to a creditor of the same degree as the
paid creditor for the sum so paid.