The Payout of a Life Insurance Policy into an Unrehabilitated Insolvent's Estate: Malcolm Wentzel v Discovery Life Limited: In Re Botha v Wentzel (1001/19) [2020] ZASCA 121 (2 October 2020)
One of the consequences of sequestration is the vesting of the property of an insolvent person in the trustee of the insolvent estate. However, not all the property of the insolvent person vests in the trustee as there are some exceptions. Under section 63 of the Long-Term Insurance Act 52 of 1998,...
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| Format: | Article |
| Language: | Afrikaans |
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North-West University
2022-05-01
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| Series: | Potchefstroom Electronic Law Journal |
| Subjects: | |
| Online Access: | https://perjournal.co.za/article/view/11486 |
| _version_ | 1818240379809431552 |
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| author | Zingapi Mabe Edith Mbiriri |
| author_facet | Zingapi Mabe Edith Mbiriri |
| author_sort | Zingapi Mabe |
| collection | DOAJ |
| description |
One of the consequences of sequestration is the vesting of the property of an insolvent person in the trustee of the insolvent estate. However, not all the property of the insolvent person vests in the trustee as there are some exceptions. Under section 63 of the Long-Term Insurance Act 52 of 1998, life insurance policy benefits are excluded from forming part of the insolvent estate and thus do not vest in the trustee and are unavailable for the payments of the debts of the insolvent. The exclusion of these benefits diverts property from the insolvent estate and, consequently, the creditors who could benefit from the property. This note discusses Malcolm Wentzel v Discovery Life Limited: In Re Botha v Wentzel (1001/19) [2020] ZASCA 121 (2 October 2020), and considers whether a beneficiary of a life insurance policy payout is required to hand over such payment to the trustee of his insolvent estate. Further, it highlights the conflicting provisions between insolvency legislation and insurance legislation and examines the effects of section 63 on an insolvent estate where the insolvent was married in community of property.
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| first_indexed | 2024-12-12T13:12:31Z |
| format | Article |
| id | doaj.art-e0da25d6199b48dca7014b295d8558ee |
| institution | Directory Open Access Journal |
| issn | 1727-3781 |
| language | Afrikaans |
| last_indexed | 2024-12-12T13:12:31Z |
| publishDate | 2022-05-01 |
| publisher | North-West University |
| record_format | Article |
| series | Potchefstroom Electronic Law Journal |
| spelling | doaj.art-e0da25d6199b48dca7014b295d8558ee2022-12-22T00:23:30ZafrNorth-West UniversityPotchefstroom Electronic Law Journal1727-37812022-05-012510.17159/1727-3781/2022/v25ia11486The Payout of a Life Insurance Policy into an Unrehabilitated Insolvent's Estate: Malcolm Wentzel v Discovery Life Limited: In Re Botha v Wentzel (1001/19) [2020] ZASCA 121 (2 October 2020)Zingapi Mabe0Edith Mbiriri1University of South Africa, Department of Mercantile LawUniversity of South Africa One of the consequences of sequestration is the vesting of the property of an insolvent person in the trustee of the insolvent estate. However, not all the property of the insolvent person vests in the trustee as there are some exceptions. Under section 63 of the Long-Term Insurance Act 52 of 1998, life insurance policy benefits are excluded from forming part of the insolvent estate and thus do not vest in the trustee and are unavailable for the payments of the debts of the insolvent. The exclusion of these benefits diverts property from the insolvent estate and, consequently, the creditors who could benefit from the property. This note discusses Malcolm Wentzel v Discovery Life Limited: In Re Botha v Wentzel (1001/19) [2020] ZASCA 121 (2 October 2020), and considers whether a beneficiary of a life insurance policy payout is required to hand over such payment to the trustee of his insolvent estate. Further, it highlights the conflicting provisions between insolvency legislation and insurance legislation and examines the effects of section 63 on an insolvent estate where the insolvent was married in community of property. https://perjournal.co.za/article/view/11486Sequestration life insurance policy insolvent trustee vesting protection of policy benefits |
| spellingShingle | Zingapi Mabe Edith Mbiriri The Payout of a Life Insurance Policy into an Unrehabilitated Insolvent's Estate: Malcolm Wentzel v Discovery Life Limited: In Re Botha v Wentzel (1001/19) [2020] ZASCA 121 (2 October 2020) Potchefstroom Electronic Law Journal Sequestration life insurance policy insolvent trustee vesting protection of policy benefits |
| title | The Payout of a Life Insurance Policy into an Unrehabilitated Insolvent's Estate: Malcolm Wentzel v Discovery Life Limited: In Re Botha v Wentzel (1001/19) [2020] ZASCA 121 (2 October 2020) |
| title_full | The Payout of a Life Insurance Policy into an Unrehabilitated Insolvent's Estate: Malcolm Wentzel v Discovery Life Limited: In Re Botha v Wentzel (1001/19) [2020] ZASCA 121 (2 October 2020) |
| title_fullStr | The Payout of a Life Insurance Policy into an Unrehabilitated Insolvent's Estate: Malcolm Wentzel v Discovery Life Limited: In Re Botha v Wentzel (1001/19) [2020] ZASCA 121 (2 October 2020) |
| title_full_unstemmed | The Payout of a Life Insurance Policy into an Unrehabilitated Insolvent's Estate: Malcolm Wentzel v Discovery Life Limited: In Re Botha v Wentzel (1001/19) [2020] ZASCA 121 (2 October 2020) |
| title_short | The Payout of a Life Insurance Policy into an Unrehabilitated Insolvent's Estate: Malcolm Wentzel v Discovery Life Limited: In Re Botha v Wentzel (1001/19) [2020] ZASCA 121 (2 October 2020) |
| title_sort | payout of a life insurance policy into an unrehabilitated insolvent s estate malcolm wentzel v discovery life limited in re botha v wentzel 1001 19 2020 zasca 121 2 october 2020 |
| topic | Sequestration life insurance policy insolvent trustee vesting protection of policy benefits |
| url | https://perjournal.co.za/article/view/11486 |
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