DUTIES OF PERSONAL REPRESENTATIVES

Question 1

DUTY TO COLLECT THE DECEASED’S ASSETS

Answer 1

1. Within a reasonable time, the PRs must collect the moniesdue and other assets of the deceased which vest in them.
2. Note that the duty to
   collect the deceased’s assets only relates to property which devolves on the PRs, not to assets which pass directly tobenefciaries

Question 2

DUTY TO ADMINISTER THE ESTATE

Answer 2

Reasonable steps must be taken to preserve the deceased’s estate (within the ‘executor’s year’ of 12 months) and realise any investments which it is not proper for them to retain. PRs then pay of debts and legacies and then distribute the residue per the will or intestacy rules.

Question 3

DUTY OF CARE—TRUSTEE ACT 2000

Answer 3

The Trustee Act 2000 applies to PRs as well as trustees. Sec-tion 1 requires 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.
This is** additional** to the fundamental duties to act** in the best interest** of benefciaries and to comply with the terms of any trust imposed. **

Question 4

Liability for Breach of Duty of Care

Answer 4

Typically, a will **excludes **PRs’ liability for breach of this duty
of care. If not, the PRs may be liable to the benefciaries or
creditors for losses arising from their breach of duty—for
example, from misappropriation of assets, maladministration, or negligence.

Question 5

Loss from Another PR’s Breach

Answer 5

A PR is not liable for loss from a fellow PR’s breach of duty unless negligence is an issue.

Question 6

Court Has Discretion

Answer 6

The court can, at its discretion, **relieve **a PR from liability for breach of duty if it is satisfed that the PR “has acted hon-estly and reasonably and ought fairly to be excused for the breach”.