MRL3701 - Study Unit 7 - Vesting Of The Assets Of The Insolvent | Questions And
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FUNCTION OF THE TRUSTEE - 1. Collect the assets in the estate
2. realize them
3. distribute proceeds amongst creditors in the order of preference laid down by the Act.
VESTING OCCURS - even in respect of property which has been sold in execution if the debtor's estate is
sequestrated before delivery or transfer of the property concerned.
IF PROVISION TRUSTEE IS APPOINTED - Estate vests in him before vesting in the trustee
THE ESTATE REMAINS VESTED IN THE TRUSTEE UNTIL - 1. the discharge of the sequestration order by
the court
2. the acceptance by creditors of an offer of composition made by the insolvent which provides that the
insolvent's property will be restore to him
3. an order for the insolvent's rehabilitation is granted in terms of s124(3)
IF TRUSTEE VACATES HIS OFFICE, IS REMOVED FROM OFFICE OR DIES - estate revests in the Master until
a new trustee is appointed. If there is a co-trustee the estate remains vested in him.
PROPERTY WHICH FALLS INTO ESTATE - The insolvent estate comprises the following:
1. all property of the insolvent at the date of sequestration, including property (or proceeds thereof) in
the hands of a sheriff under a writ of attachment; and
2. all property which the insolvent acquires or which accrues to him during the sequestration, including
any property that the insolvent recovers for the benefit of the estate where the trustee fails to take the
necessary action.
PROPERTY - movable or immovable property wherever situated in the Republic and includes contingent
interests in property, other than the contingent interest of a fideicommissary ehir or legatee
, IMMOVABLE PROPERTY - land and every right tor interest in land or minerals which is registrable in a
deeds registry within the Republic.
MOVABLE PROPERTY - every kind of property and every right or interest which is not immovable
property (liquor license)
PROPERTY INHERITED BY A SPOUSE IN A MARRIAGE IN COMMUNITY OF PROPERTY - forms part of the
insolvent estate even if the will contains a provision specifically excluding the property form any
community of property.
PROPERTY INHERITED BY AN INSOLVENT DURING HIS INSOLVENCY - falls into his insolvent estate,
notwithstanding a contrary provision in the testator's will.
PROPERTY OF THE SPOUSE OF THE INSOLVENT WHERE THE MARRIAGE IS OUT OF COMMUNITY OF
PROPERTY - also vests in the trustee of the insolvent estate, until it is released by the trustee.
PROPERTY WHICH DOES NOT FALL INTO THE ESTATE - 1. Wearing apparel, bedding etc
2. Remuneration for work done
3. Pension
4. compensation for defamation or personal injury
5. Compensation for occupational injuries or diseases
6. benefits payable to miner
7. unemployment insurance benefits
8. insurance policies
9. share in accrual
10. trust property/funds
11. Right of labour tenant to land or right in land
12. friendly society moneys and assets
13. property acquired with money from above sources
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