Admin powers of PRs Flashcards
ο»ΏSale Mortgage or Lease of Estate Property
PRs have the statutory power to sell, mortgage, or lease estate property.
Appropriation of Estate Assets
PRs can use an estate asset to satisfy a legacy or other interest if the beneficiary consents.
Appointment of Trustees for Minors
PRs can appoint trustees for minor beneficiaries who cannot provide a valid receipt for monies or assets.
Insurance of Estate Property
PRs have the power to insure estate property.
Delegation to Agents
PRs may delegate duties to agents. They are liable for breaches by the agent only if they failed to use reasonable care in appointing the agent.
Indemnity for Expenses
PRs may indemnify themselves for properly incurred expenses on behalf of the estate.
Continuing Sole Trade Business
PRs do not have a statutory power to continue the deceasedβs sole trade business; this must be provided for in the will.
Investment
PRs have the power to invest estate assets. Investments must be suitable for the trust and diversified. PRs can be liable to beneficiaries for losses resulting from breaches of these principles.
Income for Minors
PRs may use income from a gift to a minor for the minorβs maintenance, education, or benefit. If not applied, the income must be accumulated until the minor turns 18, and then added to capital unless a contingency remains.
Advances to Beneficiaries
PRs may advance funds to any beneficiary with a vested or contingent interest in the estate, up to the presumptive share. Consent from anyone with a prior life interest is required. If an advance is made on a contingent gift that fails, repayment is not required.
Receipt for Sale of Land
A sole trustee can give a valid receipt for the sale proceeds of land, but if there are multiple PRs, all must join for the transfer of land and shares in a company.
