Chapter 11: Duties of Personal Representatives

Question 1

In what circumstances will PRs be held liable for loss?

Answer 1

Only if it resulted from their unreasonable conduct

Question 2

What steps must be taken in regards to the administration of the estate?

Answer 2

Reasonable steps must be taken to preserve the deceased’s estate within the executor’s year (12 months from deceased’s death) and realise any investments which it is not proper for them to retain.

PRs must then pay off debts and legacies and distribute the residue in accordance with the will or intestacy rules

Question 3

What standard of care must PRs adopt?

Answer 3

PRs must act with reasonable care and skill taking into account any specialist knowledge they have

Question 4

Wills typically exclude PRs liability for breach of duty of care. True or false?

Answer 4

True

If there is no exclusion in the will, PRs may be liable to the beneficiaries or creditors for losses arising from their breach of duty

Question 5

Is a PR liable for loss from a fellow PR’s breach of duty?

Answer 5

A PR will not be liable unless they themselves have behaved negligently in preventing the breach

Question 6

Can the Court relieve a PR from liability for breach of duty?

Answer 6

Yes, if the PR has acted honestly and reasonably and ought fairly to be excluded from the breach