A taxing question

When someone dies a trustee takes over theiir assets and liabilities, their estate. They have to pay out all the debts and share the rest of their estate according to the deceased's will. If there is CGT to be paid it comes from the estate. If the estate doesn't have enough money left over, then I am not sure what happens – I think the estate just goes into administration. All the creditors would split up the proceeds, including the ATO, taking smaller sums.

I am not sure what would happen if you owned a property as tenants in common where the other person's share is passed to the surviving person, ie it bypasses the person's will.