Chapter 11: Duties of Personal Representatives Flashcards
When must PRs collect the monies due and other assets of the deceased which vest in them?
Within a reasonable time.
What do PRs usually need to do to be able to deal with a deceased’s asset?
Produce the grant of representation to the relevant persons
When will PRs be liable for loss?
Only if it resulted from their unreasonable conduct
What is the duty to administer the estate?
Reasonable steps must be taken to preserve the deceased’s estate and realise any investments which it is not proper for them to retain.
PRs then pay off debts + legacies and then distribute the residue per the will or intestacy rules.
When must reasonable steps be taken to preserve the deceased’s estate?
Within the ‘executor’s year’ of 12 months
What does section 1 of the Trustee Act require of PRs?
That PRs act with reasonable care and skill, taking account of any specialist knowledge or experience, or what is reasonably expected of them if professional PRs.
What are the fundamental duties of the PRs?
1 - to act in the best interest of beneficiaries,
2 - to comply with the terms of any trust imposed
What liability is there if a PR breaches their duty of care?
Typically, a will excludes PRs’ liability for breach of this duty of care.
If not, PRs may be liable to the beneficiaries or creditors for losses arising from their breach of duty - e.g., from misappropriation of assets, maladministration, or negligence
Is a PR liable for loss from a fellow PR’s breach of duty?
No - unless negligence is an issue
What power does the court have when it comes to liability for breach of duty?
The court can, at its discretion, relieve a PR from liability for breach of duty if it is satisfied that the PR “has acted honestly and reasonably and ought fairly to be excused for the breach”.
