Duties and Powers of PR's

Question 1

What act sets out the duties

Answer 1

S25 AEA 1925

Question 2

What are the duties

Answer 2

Register Death
Arrange Funeral – executors are responsible for the disposal of the body.
Value the Estate
Place Statutory Adverts S27 Trustee Act 1925
Make HMRC Declarations
Call in the Estate
Pay Debts
Produce Estate Accounts
Distribute Estate

Question 3

When do the duties start

Answer 3

An Executors powers start from the moment of the testators death.
Property vests in the executor when the deceased dies (s1(3) AEA 1925)
An Administrators powers start from the date of the grant, until that point they are implied powers from s7 AEA 1925
On intestate death the estate vests with the Public Trustee (s9(1) AEA 1925)

Question 4

Register Death

Answer 4

Executors are responsible for registering the death but can be done by someone else(Family)

Question 5

Arrange Funeral

Answer 5

Executors are responsible for the disposal of the body but it can be done by someone else

Question 6

Value the estate

Answer 6

To establish if the estate is solvent or insolvent and be aware of any inheritance tax needs

Question 7

Place statutory adverts

Answer 7

S27 Trustee act 1925 executor is responsible to ensure death is known to any unknown creditors etc this is achieved by placing adverts in the London Gazette and also deceased local paper with a time limit of not less then 2 months for claims to made

Question 8

Make HMRC Declarations

Answer 8

Complete, submit & Pay any inheritance tax due

Question 9

Call in the estate

Answer 9

Notify and collect assets owned by Deceased (S25 1 AEA 1925

Question 10

Pay Debts

Answer 10

Pay debts according to priorities
Funeral Testamentary and Administration Expenses
Secured Creditors
Unsecured creditors – Insolvency Act 1986 & Administration of Insolvent Estate of Deceased Person Order 1986
Specially Preferred Debts
Preferred Debts
Ordinary debts
Deferred Debts

Question 11

Produce Estate accounts

Answer 11

Keep detailed records of all in/outs to ensure protected and nothing is missed

Question 12

Distribute Estate

Answer 12

Pay any gifts/legacys

Question 13

Timings for applying for grant

Answer 13

Grant of probate anytime after death but a soon as reasonably practical/Letters of administration - not before 14 days but as soon as reasonably practical

Question 14

How soon should you pay liabilities

Answer 14

Whilst it should be done before the end of the executor year S44 Administration of estates act 1925 PR’s allows postponing but should be done soon as practically possible unwise before 6 moths and not before grant is issued