How to adress failed PhD project from last year to gain admission at same University for Master's Degree? I have the following issue with my application for a Master's Degree.

Last year, due to my families financial circumstances I dropped out of an PhD project.

Now I want to join the Univerisity under a Master's Degree.

In the admission papers it is stated I have to mention if I have previoulsy enrolled at the Univerisity and state the cirumstance and provide an explanation.

How can I respectufully adress this issue, and sincerely hope to gain re-admission? It was mainly due to financial issue in my family and as one family member deceased and my one of my parents lost employement.
I think that the best way to go about it would be to just be up-front with that you've been enrolled Before and that the loss of a close family member forced you to abandon the project. It all depends on the person on the other end going through the applications, it can go either way. 

In any case i believe that NOT telling them about this has the chance of biting you in the future, so best just disclose it.