Administration: Introduction to the role of a PR Flashcards
What is the main legal duty of a personal representative under s.25 Administration of Estates Act 1925?
A. To notify HMRC within 30 days of death
B. To ensure all beneficiaries receive an equal share
C. To store the will securely at the High Court
D. To collect and get in the real and personal estate of the deceased and administer it according to law
D. To collect and get in the real and personal estate of the deceased and administer it according to law
Explanation: This is the core duty imposed on PRs by statute, requiring them to manage the estate and distribute assets lawfully.
When can an executor act in the administration of an estate?
A. From the date of death
B. Only once the grant of representation is issued
C. Only after consulting all beneficiaries
D. After submitting inheritance tax forms
A. From the date of death
Explanation: Executors derive their authority from the will itself and can act immediately upon death, though in practice they usually wait for the grant.
What happens to legal title of the estate upon death?
A. It vests automatically in the PRs
B. It stays with the deceased’s family
C. It is frozen until all debts are paid
D. It passes to the Crown
A. It vests automatically in the PRs
Explanation: Legal title to the deceased’s estate passes to the personal representatives who then have the power to administer it.
What is the source of an administrator’s authority to act?
A. The will
B. A formal letter from the next of kin
C. The grant of representation
D. The deceased’s solicitor
C. The grant of representation
Explanation: Administrators are appointed by statute and have no legal authority until the grant is issued.
Who can act as a personal representative?
A. Only a solicitor or accountant
B. Anyone named in the will or appointed under statute
C. Only family members over 18
D. Only a government official
B. Anyone named in the will or appointed under statute
Explanation: PRs may be individuals named in the will (executors) or those entitled under the Non-Contentious Probate Rules if no will exists.
Which of the following would most likely require a solicitor to act as PR?
A. A simple estate with one bank account
B. A low-value estate with no will
C. An estate where the spouse is the sole beneficiary
D. A complex estate involving trusts or disputes
D. A complex estate involving trusts or disputes
Explanation: Solicitors are typically appointed where legal complexity or family conflict makes professional management advisable.
What is the role of a PR once debts and taxes are settled?
A. To destroy all estate records
B. To act as trustee of any ongoing trust
C. To distribute remaining assets to beneficiaries
D. To resign and appoint new PRs
C. To distribute remaining assets to beneficiaries
Explanation: PRs must ensure all debts and liabilities are settled before distributing the estate according to the will or intestacy rules.
What must be true for a solicitor instructed by PRs to act?
A. The solicitor must be one of the beneficiaries
B. The solicitor acts on instructions from HMRC
C. The solicitor must be formally appointed by the court
D. The solicitor acts on the instructions of the PRs
D. The solicitor acts on the instructions of the PRs
Explanation: When advising PRs, the solicitor is their agent and must take instruction from them, not from the beneficiaries or others.
What happens when PRs also act as trustees of a statutory trust?
A. Their fiduciary role continues as trustees
B. They must be replaced by independent trustees
C. They automatically retire when the trust is created
D. They cannot act as PRs at the same time
A. Their fiduciary role continues as trustees
Explanation: PRs can also be trustees, especially when managing statutory trusts under intestacy, and their duties remain fiduciary in nature.
What is the key difference between a PR and a trustee?
A. Trustees owe no duty of care
B. Trustees continue to act after administration ends
C. PRs cannot distribute any assets
D. PRs have no fiduciary duties
B. Trustees continue to act after administration ends
Explanation: PRs conclude their duties once administration is complete, but trustees continue to act in relation to ongoing trusts.
What kind of legal document confirms a PR’s authority to act?
A. Death certificate
B. Letters of confirmation
C. Grant of representation
D. Statement of truth
C. Grant of representation
Explanation: The grant confirms the PR’s legal authority to deal with the estate and is usually required by asset holders before funds are released.
Which of the following best describes the solicitor’s role in contentious probate matters?
A. To sign estate cheques
B. To conduct tax calculations
C. To issue grants of representation
D. To act on behalf of PRs or beneficiaries in disputes
D. To act on behalf of PRs or beneficiaries in disputes
Explanation: In contentious probate, solicitors represent clients in claims such as will disputes or claims under the Inheritance Act 1975.
