administration (2) (week 5) Flashcards
is a PR personally liable for loss caused by a breach of duty?
yes
what are the two duties of a PR before the issue of a grant?
common law duty to dispose of the deceased’s body
statutory duty to provide info about the estate to HMRC and pay IHT due
what are the two duties of a PR under the grant?
collect and administer estate according to law
provide an inventory and account of the estate assets
who does a PR owe their duties to?
estate beneficiaries and creditors
what does the duty of due diligence consist of for PRs (there are 3)?
general duty to administer estate with due diligence and within reasonable time
complete administration within 12 months of the date of death (executor’s year)
appointment is for life
what are the 2 fiduciary duties that a PR has?
place themselves in a position of conflict or profit from their position
where are the two places that a PRs power derives from?
statute and will/codicil
when should powers of a PR dictated by statute be used?
deceased died interstate
life a will but there are gaps in the will relating to such powers
what are the statute powers of a PR?
sell, charge or lease
appropriate
power to insure
power to invest
power to charge for services
reimbursement of PR expenses
power to delegate
power to appoint trustees
power to accept receipt from parent
power to run a business
can a lay PR or professional PR acting alone have the power to charge for services?
yes, but need express power in the will to charge for their services
can a lay PR or professional PR who is one of a few PRs have the power to charge for services?
yes, as long as they are acting alone and need the co-PRs to give their written possession.
is a PR personally liable for losses that result from a breach of duty?
yes, they are personally liable for losses that result from a breach of duty which they commit.
what does devastavit (wasting assets) mean?
claim of action against a PR for breach of their PR duties. can be brought where there is loss to the estate because of PR’s wrongdoing. C will seek a court order that PR makes good the loss using their personal assets
what can a claim against a PR be based on (there are 4)?
maladministration
misses of assets
negligence
breach of fiduciary duty
what is maladministration? (way a PR can have a claim brought against them)
incorrectly administering the estate by giving it to wrong beneficiaries, using residuary estate to meet liabilities that should have been paid from other parts of the estate and paying legacies before debts without retaining sufficient funds for creditors.
