Succession Act 1965 section 46

Administration of assets

Section 46 sets out the order in which a deceased person's assets are to be applied to pay debts, funeral expenses, administration costs, and any legal rights of a surviving spouse.

• Where an estate is insolvent, it must be administered following bankruptcy-style rules set out in Part I of the First Schedule.
• A personal representative may retain assets to satisfy debts owed to them personally and may prefer certain creditors, but the right of retainer cannot be exercised if the estate is insolvent.
• Where an estate is solvent, assets are applied in a prescribed order (Part II of the First Schedule) to discharge funeral, testamentary and administration expenses, debts, liabilities, and any legal right — subject to the terms of the will and any charges on property.
• If assets are applied out of the prescribed order, beneficiaries whose interests are affected have the right to have the assets marshalled, so that they can step into the position of the creditor or claimant against assets that should have been used first.

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