The deceased money was channeled to his children. However he owed his employees' wages and has an outstanding vehicle debts, totally $10,000. How to handle such issue?

Answer :



    answered on 16/05/2018

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    As a general rule, all debts will be paid out of the deceased estate, before the remainder is distributed (Probate and Administration Act). However, note that this rule only applies to debts owed by the deceased. For instance, debts undertaken by a company owned by the deceased are not debts owed by the deceased, as the company is a separate legal entity from the deceased.

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