Administration: PR Powers Flashcards
Which of the following powers allows PRs to satisfy a beneficiary’s entitlement by transferring a specific asset instead of cash?
A. Power to invest
B. Power to sell
C. Power to charge
D. Power to appropriate
D. Power to appropriate
Explanation: Under s41 AEA 1925, PRs may appropriate an asset to satisfy a beneficiary’s entitlement, provided it is not prejudicial to other beneficiaries and the receiving beneficiary consents.
Under s29 Trustee Act 2000, when can a professional PR charge for their services?
A. Only if expressly allowed in the will
B. When acting with co-PRs and with their written consent
C. Only if the estate exceeds £325,000
D. If they are the only PR appointed
B. When acting with co-PRs and with their written consent
Explanation: A professional PR (e.g., solicitor) can charge if not acting alone and if co-PRs consent in writing. Otherwise, the will must explicitly authorise payment.
Sarah is a PR who has identified a valuable painting in the deceased’s estate. The will left everything to the deceased’s son, James. James agrees to receive the painting in part-satisfaction of his share. What must Sarah consider before appropriating the painting?
A. Whether the painting was jointly owned
B. Whether James is over 18
C. The current value of the painting and James’s entitlement
D. Whether a creditor has a claim on the painting
C. The current value of the painting and James’s entitlement
Explanation: PRs must ensure the asset’s current value matches the beneficiary’s entitlement, and any difference should be made up in cash if required.
Which power allows PRs to appoint someone else to carry out investment decisions on their behalf?
A. Power to charge
B. Power to delegate
C. Power to insure
D. Power to appoint trustees
B. Power to delegate
Explanation: Under s11 TA 2000, PRs can delegate powers (except distribution decisions) to agents, provided they issue a written policy statement and review the delegation regularly.
Which of the following statutory powers allows PRs to take out comprehensive cover for estate assets?
A. Power to insure
B. Power to invest
C. Power to sell
D. Power to appropriate
A. Power to insure
Explanation: Under s19 TA 1925, PRs have the authority to insure estate property for its full value, and premiums can be paid from income or capital.
Tom is a professional executor acting alone. He has spent several hours administering a complex estate. Can he charge the estate for his time?
A. Yes, but only if the will contains an express charging clause
B. Yes, if the co-PR agrees in writing
C. No, not under any circumstances
D. Yes, under s28 TA 2000 without restriction
A. Yes, but only if the will contains an express charging clause
Explanation: A sole professional PR can only charge for their services if there’s an express clause in the will allowing them to do so.
A PR wishes to use estate capital to pay for travel to an out-of-town bank where assets are held. Which statutory power allows this?
A. Power to invest
B. Power to appoint trustees
C. Power to appropriate
D. Reimbursement of expenses
D. Reimbursement of expenses
Explanation: Under s31 TA 2000, PRs can be reimbursed for proper expenses incurred in the administration of the estate, such as travel.
Which statutory power allows PRs to choose which land or property to retain as an investment?
A. Power to charge
B. Power to appoint trustees
C. Power to invest
D. Power to appropriate
C. Power to invest
Explanation: PRs may invest in freehold or leasehold land under s8 TA 2000, provided their investment decisions follow the standard investment criteria and advice is sought unless inappropriate.
A will gives a cash gift to a minor beneficiary. The PRs do not want to hold the gift until the minor reaches 18. What statutory power allows them to transfer it to someone else to manage?
A. Power to delegate
B. Power to charge
C. Power to insure
D. Power to appoint trustees
D. Power to appoint trustees
Explanation: Under s42 AEA 1925, PRs may appoint trustees (e.g. a parent or guardian) to manage the legacy on behalf of a minor.
Which of the following is a power that PRs may exercise only if included expressly in the will?
A. Power to sell property
B. Power to charge for services as a sole PR
C. Power to invest in land
D. Power to appropriate an asset
B. Power to charge for services as a sole PR
Explanation: A sole professional PR can only charge the estate for their time if the will includes an express charging clause.
Which of the following activities can PRs not delegate under s11 TA 2000?
A. Reviewing investments
B. Preparing the estate accounts
C. Managing insurance cover
D. Decisions about whether to distribute assets
D. Decisions about whether to distribute assets
Explanation: Distribution decisions are core fiduciary decisions and cannot be delegated. PRs must decide how and when to distribute assets personally.
A will appoints two PRs. One is unavailable to act, and the other sells a car from the estate. Was the sale valid?
A. Yes, one PR can act alone to transfer chattels like personal property
B. No, both PRs must act together in all decisions
C. Yes, but only with the court’s permission
D. No, because the other PR didn’t delegate their power
A. Yes, one PR can act alone to transfer chattels like personal property
Explanation: One PR can act alone in many transactions involving personal property, though decisions must normally be unanimous unless the will says otherwise.
