Chapter 2 - Administration of Estate - Personal Representatives

Question 1

ADMINISTRATION OF ESTATE - PERSONAL REPRESENTATIVES

Overview

Answer 1

1) Executors
2) Administrators
3) Rights of personal representative
3) Duties of personal representative
4) Powers of personal representative

Question 2

EXECUTORS

Overview

Answer 2

1) General
2) Minor executors
3) Cessation of an executor’s right
4) Death of an executor
5) Removal of an executor
6) Chain of executorship

Question 3

EXECUTORS

General

Answer 3

S.3 PAA

• probate may be granted to an executor appointed by a will;
• appointment may be expressed or implied;
• several executors: may be granted to all simultaneously or at different times, subject to S.4

Question 4

EXECUTORS

Minor executors

Answer 4

S.20 PAA

• no representation shall be granted to a person while he is a minor;
• instead, LA with or without will annexed may be granted to the guardian.

Question 5

EXECUTORS

Cessation of an executor’s rights

Answer 5

S.7 PAA - right cease when the executor:

• survives the testator but dies w/o having taken out probate;
• is cited to take out the probate but does not appear to the citation;
• renounces the probate of the will.

Question 6

EXECUTORS

Death of the executor

Answer 6

S.14 PAA

• more than 1 executors: estate accrues to surviving executors
• only 1 executor: LA will be granted for estate not fully administered, guided by the rules in original grants

Question 7

EXECUTORS

Removal of executors

Answer 7

Rachael Mei Ling Ong & Anor v Dato’ Bruno Henry:

• when it is obvious that the parties seem to unable to work together for the benefit of the estate & beneficiaries, they may apply to remove the executor.

Question 8

EXECUTORS

Chain of executorship

• The law

Answer 8

1) S.12(1) PAA:
- an executor of a sole or last surviving executor of a testator is the executor of that testator.
2) S.16 PAA
- before a grant of administration de bonis non with the will annexed can be made, it must be established that there is no chain of executorship.

Question 9

EXECUTORS

Chain of executorship

• The case

Answer 9

Ramanathan S/O AR A Nachiappan:

• grant of LA de bonis non with the will annexed without the break in the chain of executorship is wrong in law.

Question 10

ADMINISTRATORS

Overview

Answer 10

1) Circumstances administrators may be appointed
2) Rights of administrators
3) Death of administrators
4) Types of LA

Question 11

ADMINISTRATORS

Circumstances administrators may be appointed

Answer 11

1) There is will but no proven executor - S.16 PAA
2) There is no will - S.30 PAA
3) To preserve the integrity of the estate - S.19 PAA

Question 12

ADMINISTRATORS

Rights of administrators

Answer 12

S.31 PAA

• Same rights & liabilities as if he were the executor of the deceased.

Question 13

ADMINISTRATORS

Death of administrators

Answer 13

S.14 PAA

• Administration may be granted in respect of estate not fully administered.

Question 14

ADMINISTRATORS

Type of LA

Answer 14

1) LA with will annexed

• no proven executors;
• executor is of unsound mind;
• executor is a minor;
• executor is absent;

2) LA de bonis non
- executor or administrator died before he completed the administration of the estate;
3) LA pendente lite
- to preserve integrity of the estate pending ongoing litigation.

Question 15

RIGHTS OF PERSONAL REPRESENTATIVES

Overview

Answer 15

1) Apply for grant

2) To sue or be sued

Question 16

RIGHTS OF PERSONAL REPRESENTATIVES

Apply for grant

Answer 16

S.3 PAA

• PR has the rights to apply for grant of representation

Question 17

RIGHTS OF PERSONAL REPRESENTATIVES

To sue or be sued

Answer 17

S.59 PAA

• PR have the rights to sue in respect of all the cause of action that survived the deceased.

Question 18

DUTIES OF PERSONAL REPRESENTATIVE

Overview - CPD

Answer 18

1) Collect;
2) Pay debts;
3) Distribute

Question 19

DUTIES OF PERSONAL REPRESENTATIVE

Collect

Answer 19

• PR has the duties to ascertain the assets & liabilities & make inventories out of it.

Question 20

DUTIES OF PERSONAL REPRESENTATIVE

Pay debts

Answer 20

S.67(1) PAA:

• PR must enquire into & pay debts and liabilities of the deceased from the estate.

Question 21

DUTIES OF PERSONAL REPRESENTATIVE

Distribute

Answer 21

1) General - Ex P Yong Khai Min:

• Administrator has the duty to pay the debts;
• The residue is to be distributed to the beneficiaries;
• guardian holding a property for an infant is a trustee under implied trust;
• guardian must obtain leave before investing the property of the infant.

2) Infant - Re Lua Kin Sua:
- courts are more careful when there are infant beneficiaries involved.

Question 22

POWERS OF PERSONAL REPRESENTATIVE

Overview

Answer 22

1) Dispose property

2) Sign contract

Question 23

POWERS OF PERSONAL REPRESENTATIVE TO DISPOSE PROPERTY

Overview

Answer 23

1) The law
2) Exercise of discretion
3) Higher offer
4) Protection of beneficiaries interest
5) Buying the property of the beneficiaries

Question 24

POWERS OF PERSONAL REPRESENTATIVE TO DISPOSE PROPERTY

The law

Answer 24

S.60 PAA

1) The law:

• No sale, transfer, conveyance without the concurrence of all the personal representatives;
• PR may dispose of all or any property vested in him if he does so with an order of the Court.

2) The effect:
- The disposal of property by a personal representative in contravention of S.60 is voidable at the instance of any other person interested in the property.

Question 25

POWERS OF PERSONAL REPRESENTATIVE TO DISPOSE PROPERTY Exercise of discretion

Answer 25

Yap Loke Luan v Ong Wee Tok - court look at facts & circumstances of the cases; - court must ensure that price is reasonable not at the time of the offer; but at the date of hearing.

Question 26

POWERS OF PERSONAL REPRESENTATIVE TO DISPOSE PROPERTY Higher offer

Answer 26

1) Re Estate of Tunku Mohd Jewa - higher offer from the objector is allowed; - she has showed genuine interest, willingness & ability to purchase with a view to retain her late father's wishes. 2) cf. Tan Hock Khoon v Phua Siew Lang: - higher offer by the D is not allowed as there was no evidence of genuine buyer; - this is so especially the affairs of the estate have been unadministered for a very long time.

Question 27

POWERS OF PERSONAL REPRESENTATIVE TO DISPOSE PROPERTY Protection of beneficiaries interest

Answer 27

1) Tan Hock Khoon v Phua Siew Lang: - no requirement in law for all the beneficiaries to give consent for the sale of the estate. 2) Lim Kiang Kee & Anor v Goh Bee Hwa Mahei: - court must protect the right of the beneficiaries as opposed to the interest of the purchasers.

Question 28

POWERS OF PERSONAL REPRESENTATIVE TO DISPOSE PROPERTY Buying the property of the deceased

Answer 28

1) The law: - PR is not allowed to purchase deceased's property. 2) The effect - S.61 PAA - the sale is voidable at the instance of any other person interested in the property sold.

Question 29

POWERS OF PERSONAL REPRESENTATIVE TO SIGN A CONTRACT Overview

Answer 29

1) The law 2) Requirements of leave 3) Effect of conditional agreements

Question 30

POWERS OF PERSONAL REPRESENTATIVE TO SIGN A CONTRACT The law

Answer 30

S.71 PAA - Subject to section 60; every contract entered into by a PR is binding on & enforceable against; - It can be carried into effect or be varied or rescinded by him; - In the case of a contract entered into by a predecessor, it can be carried as if it had been entered into by himself.

Question 31

POWERS OF PERSONAL REPRESENTATIVE TO SIGN A CONTRACT Requirements of leave

Answer 31

Yap Loke Luan v Ong Wee Tok - Purchasers can enter into SPA with administrators to buy land subject to leave by the Court; - Court may grant leave taking into account the beneficiaries' interest.

Question 32

POWERS OF PERSONAL REPRESENTATIVE TO SIGN A CONTRACT Effect of conditional agreements

Answer 32

1) General - Re Estate of Tunku Mohd Jewa: - Administrators are not bound by conditional agreements until leave of court is obtained. 2) Deposit paid - Lim Kiang Kee & Anor v Goh Bee Hwa Mahei: - Although purchaser had paid deposit, conditional contract remain unenforceable until leave of court is obtained.