Will V PR as Trustees Flashcards
Duties of PR
1) have a duty to take reasonable steps to preserve the deceased’s estate and realise on any investments with are not proper for the PR to retain
2) PR must act in the best interests of the beneficiaries with reasonable care and skill taking into account any specialist knowledge
3) A PR is not liable for breach of duty by another PR unless the PR was negligent in preventing the other’s breach
PR’s power
1) Property: to sell, mortgage or lease estate property, to appropriate property to satisfy a legacy or other interest provided the beneficiary consent
2) appoint trustees for minor beneficiaries
3) power to insure property
4) power to delegate duties to agents and are liable for breaches by the agent
5) power to indemnify themselves for expenses they properly incur on behalf of the estate
6) Power to invest suitable for the trust and investments should be diversified
7) power to apply the income for the maintenance, education or benefit of the minor or otherwise accumulate the income until age of majority
Can a PR carry out the deceased’s sole trade business?
A PR does not have a statutory power to continue carrying out the deceased’s sole trade unless it is given by provision in the deceased’s will
PR power to advance funds
PRs may advance funds to any beneficiary with a vested or contingent interest in capital of the estate
Advance may be up to the entire presumptive share of the beneficiary
Anyone with a prior life interest in the funds must give consent
if contengent gift and the contigency fails, the beneficiary has no obligations to pay back the advance
Discuss valid receipt given by the PR for sale of land
As sole trustee can give a valid receipt for the proceeds of the sale of theland, but there is more than one PR, all must join for the transfer of land and shares in a company
Discuss section 27 Trustee Act 1925
PR are personally liable to any unpaid beneficiary or creditors. section 27 of the Trustee Act 1925 enables trustees or personal representatives to protect themselves from liability against any claims from creditors and beneficiaires that they have not had any notice of at the time that they convey or distrubte the property in question.
The requirements for the advertisemnts:
where the property is land, a notice placed in the gazette and a local newspaper
setting out a period of at least 2 months for any interested person to contact the PR within 2 months
If a PR cannot find a known beneficiairy or creditor, measures to protect them against personal liability
Make the payment owed to the beneficiary or creditor into the court and distribute the rest of the estate
Distribute everything with an indemnity from the beneficiaires
Seek a benjamin order:
purchase insurance against the risk of a missing claimant appearing
What is a benjamin order
a court order giving PRs leave to distribute the estate based on an assumpotion set out in the order (missing beneficiary should be treated as having died before deceased)
How can a PR protect themselves against claims against estate under Inheritance (Provision for Family and Dependants) Act 1975
PRs should wait six months from the date of the grant
