Insolvency

If the deceased was in bankruptcy or a protected trust deed and the trustee has not been discharged, the trustee will wind up the estate. They can cash in any life policies belonging to the deceased and use them to pay outstanding debts and costs of winding the estate up. The trustee has a legal responsibility to pay the funeral and deathbed expenses, but their fees and expenses get priority treatment for payment from the estate.1s129(1) B(S)A 2016