Administration: PR Duties Flashcards
Which of the following is a core duty of a personal representative under section 25 Administration of Estates Act 1925?
A. To collect and administer the deceased’s estate according to law
B. To distribute the entire estate within 6 months
C. To avoid paying inheritance tax
D. To appoint a professional trustee for all estates
A. To collect and administer the deceased’s estate according to law
Explanation: s25 AEA 1925 confirms this as the fundamental duty of all PRs.
Ahmed, a PR, sells estate land even though the will prohibited its sale. What has he done?
A. Performed a lawful act under the Trustee Act 2000
B. Acted within the executor’s year
C. Acted in the best interest of creditors
D. Breached his fiduciary duty
D. Breached his fiduciary duty
Explanation: PRs must act within their powers. Acting against express will terms is a breach.
Which of the following duties is not fiduciary in nature?
A. Duty not to profit from the position
B. Duty to avoid conflicts of interest
C. Duty to act in the best interests of the beneficiaries
D. Duty to pay inheritance tax
D. Duty to pay inheritance tax
Explanation: This is a statutory duty under the Inheritance Tax Act 1984, not a fiduciary one
What is the ‘executor’s year’?
A. The 12-month period within which administration should be completed
B. A 6-month deadline for probate applications
C. A 24-month maximum period for distributing residuary legacies
D. The time PRs have to apply for inheritance tax refund
A. The 12-month period within which administration should be completed
Explanation: PRs are expected to complete the administration within 12 months from death.
Diana, a professional PR, delegates investment duties but fails to supervise. Losses occur. Who is liable?
A. Diana, for breaching her statutory duty of care
B. The investment advisor
C. The beneficiaries
D. The probate court
A. Diana, for breaching her statutory duty of care
Explanation: Under s1 and s35 Trustee Act 2000, professionals have a higher duty when delegating powers.
Following distribution, a new creditor appears with a valid claim. The PR did not advertise for unknown creditors. What is the result?
A. The creditor cannot claim as the estate is closed
B. The PR is personally liable unless protected under s27 AEA
C. The court must pay the creditor
D. The PR is automatically indemnified
B. The PR is personally liable unless protected under s27 AEA
Explanation: PRs may be personally liable if unknown creditors come forward, unless statutory protection was used.
Which of the following actions would most likely require the PR to act under the duty to “collect in” assets?
A. Distributing legacies to beneficiaries
B. Paying funeral expenses
C. Locating and obtaining control of a life insurance policy
D. Preparing the estate accounts
C. Locating and obtaining control of a life insurance policy
Explanation: Collecting in the assets includes locating, valuing, and gaining control of estate assets.
What is required if a PR wants to delay administration beyond 12 months?
A. A formal court extension
B. Written consent from HMRC
C. Justification for the delay showing continued due diligence
D. Approval from all beneficiaries
C. Justification for the delay showing continued due diligence
Explanation: Delays beyond the executor’s year are permitted but must be justified.
Which power is granted to PRs under statute rather than fiduciary duty?
A. Power to insure estate property
B. Duty to act loyally for beneficiaries
C. Duty not to purchase estate property
D. Duty to administer assets efficiently
A. Power to insure estate property
Explanation: This power is conferred by statute (Trustee Act 2000), not fiduciary obligation.
Who do the duties of PRs primarily benefit?
A. Executors
B. Beneficiaries and creditors
C. The court
D. HMRC
B. Beneficiaries and creditors
Explanation: PRs owe duties to those legally entitled to the estate and to those owed money.
Ben is a PR and also the beneficiary of a rare painting. He wants to buy it from the estate. What must he do to avoid breach of duty?
A. Make a private offer
B. Get consent from other PRs only
C. Get informed consent from all beneficiaries or court approval
D. Sell the painting at auction only
C. Get informed consent from all beneficiaries or court approval
Explanation: A PR must not place themselves in conflict without informed consent or court permission.
Which of the following most accurately describes the obligation to report estate details to HMRC?
A. It is optional if the estate is below £50,000
B. It applies only after the grant is issued
C. It is the beneficiary’s responsibility
D. It must be done via IHT400 for non-excepted estates
D. It must be done via IHT400 for non-excepted estates
Explanation: PRs must report asset/liability details to HMRC using IHT400 unless the estate is excepted.
