Insolvent estates management
Heirs faced with an insolvent estate after the death of a dear one, often elect to renounce to their rights in the estate to avoid paying the personal debt of the deceased. There are times however when another solution may be considered and be more appropriate: to put the estate of the deceased into bankruptcy. It may be the case for instance, when the deceased was the owner of part or all the shares of a corporation.
The trustee, to whom the interest in these shares will vest, may, if appropriate, put the corporation into bankruptcy and allow for an orderly liquidation of its assets or sell the shares of that corporation to other parties to ensure continuity of the business. The bankruptcy of an estate may facilitate the sale of assets jointly owned by the deceased and one or several other parties. Some assets of an insolvent estate, in view of their sentimental value, are worth a lot more to those close to the deceased than to anybody else. If the price offered to the trustee for these assets is fair and with Court approval if the buyer is related to the deceased, it may be possible to buy these assets from the trustee and to avoid that part of the familial heritage be lost.
Do not hesitate to contact our office should you wish to discuss this option further.