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Explanatory Memorandum to Insolvency (Northern Ireland) Order 2002

Article 10: Insolvent estates of deceased persons

This Article inserts a new Article 365A into the Insolvency (Northern Ireland) Order 1989 by addressing the effects of the Court of Appeal decision in the case of In re Palmer Deceased (A Debtor) 1994 Ch. 316. In March 1994 the Court of Appeal attributed the ordinary, rather than the technical, meaning to “the estate of a deceased person” used in the context of an order-making power in Section 421 (In Northern Ireland, Article 365). This meant that the debtor’s interest, on the day of his death, in property held on a joint tenancy (usually the matrimonial home) was no longer available  to the trustee1 to distribute among the deceased’s creditors. The Article allows the trustee of a deceased insolvent, if certain conditions are met, to apply to the High Court to recover from the survivor for the benefit of the estate the value of any interest the deceased had in a jointly-owned property.

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