NSW Beneficiary of will

[Bushy]

I am a discharged bankrupt. My question is part of the debt was to my mum who became one of the creditors in my bankruptcy. While some of the money was paid back not all was . So when she passes away is the remaining debt written off or taken off what I will inherit.

 

[Docupedia]

Debts in bankruptcy are extinguished. However, if you mum wants to give you less of her estate to counter the extinguished debt then that's her decision.

 

[Bushy]

Would she need to write that in her will?
Obviously she won’t get to make that decision after she has passed or can the executors make that decision on her behalf?

 

[Docupedia]

It would need to be in the will.

 

[Atticus]

a Codicil should do the job ... see a lawyer to get in done correctly.... Executors can't make that call

 

[Bushy]

Ok thanks

 

[Tim W]

Let's be clear - if she dies during your bankruptcy,
then no matter what the will says,
any gift to you is fair game for your Trustee In Bankruptcy.

And even when she's one of the creditors, there may be priority creditors
who get first crack at anything you inherit.
And no, even with your consent, the executor doesn't get to withhold inheritance
to settle a debt to the deceased, ahead of creditors with greater priority,
nor to postpone execution until after you're discharged.

 

[Atticus]

@Tim W maybe you missed the first sentence of the OP’s post

 

[Tim W]

Point taken.
I should have been clearer that I was writing for those who read this in future.