Powers of a Personal Representative

Question 1

Where does PR power derive from?

Answer 1

1) Statute 2) Will/Codicil

Question 2

When do statutory PR powers apply?

Answer 2

If deceased died intestate or will lacks conflicting express provisions.

Question 3

Effect of express PR powers in a will?

Answer 3

May add powers or exclude/modify statutory powers.

Question 4

Which source of PR power takes priority?

Answer 4

Express powers in the will.

Question 5

Statutory powers of a PR?

Answer 5

1) Sell/charge/lease
2) Appropriate
3) Insure
4) Invest
5) Charge for services
6) Delegate
7) Appoint trustees.

Question 6

What is the power to appropriate?

Answer 6

PRs may satisfy a beneficiary’s entitlement using specific assets.

Question 7

What is the power to appropriate subject to? When is the asset valued?

Answer 7

1) No prejudice to specific beneficiary
2) Recipient’s consent

3) Valued at date of transfer.

Question 8

What is the power to insure and why?

Answer 8

PRs may insure assets for full value using estate income or capital.

Question 9

What is the power to invest?

Answer 9

PRs must preserve estate and actively invest to grow capital.

Question 10

Can a PR invest in property?

Answer 10

Can invest in freehold or leasehold land (houses, flats, land).

Question 11

What is required when PRs invest?

Answer 11

Regular reviews; consider standard investment criteria.

Question 12

When can a professional PR charge for services?

Answer 12

If not acting alone and with written consent of co-PRs.

Question 13

When can a lay PR charge for services?

Answer 13

Only if will expressly allows it.

Question 14

Is remuneration payment considered a gift?

Answer 14

No.

Question 15

When can PR always reimburse themselves?

Answer 15

For expenses incurred on behalf of the estate.

Question 16

Examples of reimbursable expenses?

Answer 16

Travel costs during estate administration.

Question 17

Can PR reimburse for loss of personal work?

Answer 17

No, that is not a recoverable expense.

Question 18

What is the power to delegate?

Answer 18

PR can employ agents and delegate powers with conditions.

Question 19

Exceptions to PR delegation power?

Answer 19

Distribution decisions, income/capital fee decisions, trustee/nominee/custodian appointments.

Question 20

Can a PR appoint a beneficiary as agent?

Answer 20

No.

Question 21

Requirements when PR delegates powers?

Answer 21

1) Written instruction
2) Written policy statement
3) Ongoing review.

Question 22

When must PR appoint trustee?

Answer 22

If legacy can’t be paid to beneficiary.

Question 23

Who is typically trustee for a minor?

Answer 23

Parent or guardian.

Question 24

What is power to accept receipt from parent?

Answer 24

PR can accept valid receipt from minor’s parent.

Question 25

Is receipt from a 15-year-old effective if allowed in will?

Answer 25

No, minimum age is 16.

Question 26

Common law power over sole trader business?

Answer 26

PR can sell it as going concern within one year of death.

Question 27

Who is liable for business debts at death?

Answer 27

PRs, though they may indemnify themselves.

Question 28

What business assets can PR access immediately?

Answer 28

Assets of the sole trader business.

Question 29

What are STEP provisions?

Answer 29

Recognised express administrative powers drafted by STEP.

Question 30

Can joint PRs act alone?

Answer 30

Must act jointly unless will states otherwise. But can act alone for routine powers like selling assets.

Question 31

When can PRs not act alone?

Answer 31

Cannot deal alone with jointly registered stocks and shares.