The bankrupt, the trustee and the superannuation fund – which case won?
Bankrupt receives money from his late mother’s superannuation fund
A man was declared bankrupt and a trustee in bankruptcy was appointed to his estate in 2011.
In December 2013, the bankrupt’s mother died and, after a grant of probate was made in February 2014, the proceeds of her estate were distributed. Her estate included, amongst other assets, the proceeds of a regulated superannuation fund.
Under the Bankruptcy Act 1966 (Cth), payments made from a regulated superannuation fund to a bankrupt after the date of bankruptcy, unlike other payments, do not have to be divided amongst the bankrupt’s creditors.
Part of the mother’s estate, an amount of $87,900.33, was distributed to the bankrupt in accordance with her will. The money was paid to the bankrupt’s wife because the bankrupt did not operate a bank account in his own name.
The trustee brought proceedings against the bankrupt’s wife seeking a declaration that the money was not excluded under the Act and should be divided amongst the bankrupt’s creditors.