Chapter 19: Beneficiaries' Rights and Remedies

Question 1

What chose in action does a beneficiary have?

Answer 1

The right to have the deceased’s estate properly administered

Question 2

What interest does a beneficiary have in the estate prior to its administration being completed?

Answer 2

Until administration is completed, they have no legal or equitable interest in the deceased’s assets

Specific gift recipients have the right to income accruing from death.

Residuary beneficiaries have the right to intermediate income whether their interest is immediate or contingent.

Question 3

When do pecuniary legacies not carry a right to income?

Answer 3

Contingent pecuniary legacies do not carry a right to income unless the gift is to a child with entitlement at age 18.

These income rules can be overridden in the will.

Question 4

What options does a beneficiary have when difficulties arise in administration of the estate?

Answer 4

1. Administration proceedings, and
2. Actions to ‘recover loss’ suffered

Question 5

What are administration proceedings designed to ensure?

Answer 5

That the estate administration is properly conducted

Question 6

What do actions to ‘recover loss’ suffered include?

Answer 6

1. Personal actions against the PRs
2. Tracing
3. Personal actions against persons who have wrongly received estate assets

Question 7

When may happen if a beneficiary bring a personal action against the PRs?

Answer 7

PRs may be absolved under the will or by the court if they acted ‘honestly, reasonably, and ought fairly to be excused’ or by agreement with the beneficiaries

Question 8

What is meant by tracing?

Answer 8

The beneficiaries have the right to trace and recover property of the estate (or property representing such property) from the PRs or any other recipient of it.

Question 9

When is the right to trace lost?

Answer 9

Right is lost against a bona fide purchaser or if it is inequitable to do so.