Can a beneficiary be liable for debt of an insolvent estate?
Only benefieciary of an insolvent estate. One vehicle as asset but debt bigger than the value of the vehicle. Do I need to sell the vehicle and how do I settle debt, none secured?
Beneficiaries are not liable for the debts of an insolvent estate. You only get what is left after all debts are paid. The appointed executor of the estate will wind it down and publish a final liquidation and distribution account. Creditors will lodge their claim and get paid. Then what is left is distributed among beneficiaries. If there is nothing , then you get nothing. Otherwise as a beneficiary you do not take personal responsibility for any debt. Hope this helps.