Introduce the Institutional Concept of Estate Bankruptcy under the Background of Estate Administrators of China

Abstract

On the one hand, with the increase of the aging population, the disposal of inheritance has become a hot issue of concern to the masses. On the other hand, the amount of property accumulated by the masses is increasing, and the form of property is no longer limited to traditional houses, cars, and deposits. The proportion of equity, stocks, funds, insurance, bonds, virtual currency, and other properties is also increasing. Based on the Inheritance Law, the Civil Code of China establishes the estate administrator system for inheritance disposal, which is an important response to the practical needs of inheritance disputes. The estate administrator system plays an important role in preventing internal family conflicts and protecting the interests of the heirs. However, according to the unconditionally restricted inheritance principle established by the Civil Code, when the actual value of the estate is insufficient to pay off multiple creditors, the creditors who first file the lawsuit can often obtain the first payment. Because the inheritance is secret and internal, and the creditors cannot know the fact that the decedent died for the first time, the creditors' claims after the lawsuit are often unrealized. The existing system arrangement lacks the provisions on the creditors' claims for inheritance, fails to further balance the interest protection between the heirs and the creditors, and is not conducive to the settlement of inheritance claims in practice. The estate bankruptcy system aims to fairly pay off all kinds of creditors and balance the interests of multiple subjects. In the background of estate administrators, the establishment of an estate bankruptcy system can effectively make up for the lack of creditor protection in the existing provisions and improve the efficiency of estate debt repayment. It is urgent to absorb the experience of enterprise bankruptcy and construct the rules of estate bankruptcy critically in combination with the actual national conditions. This paper intends to introduce the estate administrator system, and on this basis, expound on the rationality and necessity of introducing the estate bankruptcy system. Combined with the mature experience of various countries on estate bankruptcy, it provides a reasonable basis for the preliminary construction of the system.