2. Administration - role of a PR, duties, powers, liabilities

Question 1

PR’s fiduciary duties

Answer 1

duties relating to mgmt of money or property on behalf of another

Question 2

how can a person become a PR?

Answer 2

1. appt by will - executor
2. valid will but executors unable/unwilling to act - NCPR 20 (PA1P) - administrator
3. invalid will or partial intestacy - NCPR 22 (PA1A) - administrator

Question 3

Are PRs also trustees of the estate?

Answer 3

A PR is not automatically the ‘trustee’ of the estate being administered, although the role of PR and role of trustee are similar, and both are fiduciary in nature

If any continuing trusts are created, the property which makes up the trust fund should be transferred to the trustees as part of the administration process. The PRs should record the date on which estate assets are transferred from the PRs to the trustees, even if the executors and
trustees are the same people

Question 4

in what situations are PRs always trustees?

Answer 4

• express appointment by will
• intestacy - PRs hold the estate “on trust with a power to sell” (s33 AEA)
• statutory trust arises under an intestacy (s46 AEA)

Question 5

role of a solicitor in administration

Answer 5

• instructed by PRs for advice (= PR is the client and PR signs most docs; solicitors’ costs are payable from the estate)
• appointed as executor under will (can charge the estate; LLP, trust corp or partners appointed)
• instructed to act in contentious probate (will terms, will validity, IPFDA claims)

Question 6

key steps in the administration: before issue of the grant

Answer 6

1. common law duty to dispose of the deceased’s body - usually arranged by family, often before a solicitor becomes involved
2. inform HMRC about assets and liabilities of estate (HT 400 for non-excepted estates) and pay IHT (funds need to be raised)

Question 7

what happens if a PR breaches their duties?

Answer 7

personally liable for loss

Question 8

key steps in the administration: after issue of the grant

Answer 8

3. Collect in the real and personal estate of the deceased and administer it according to
   law
4. Provide an inventory and account of the estate assets

Question 9

to whom are the duties to (3) collect in, and to administer estate owed?

Answer 9

estate beneficiaries and creditors

Question 10

duty to collect in

Answer 10

• identify and locate the deceased’s assets (incl. sums owed to the deceased)
• identify the deceased’s liabilities and creditors
• obtain control, possession or legal ownership of the assets