Wills 20 Flashcards
What rights do the following have:* All beneficiaries* Specific gift recipients* Residuary beneficiaries* Beneficiaries of contingent pecuniary legacies
All beneficiaries* A chose in action until administration is completed i.e. the right to have the deceased’s estate properly administered. Specific gift recipients * The right to income accruing from deathResiduary beneficiaries * The right to intermediate income whether their interest is immediate or contingent. Beneficiaries of contingent pecuniary legacies * A right to income only if the gift is to a child with entitlement at age 18. Note, these income rules can be overridden in the will.
At what point does a beneficiary have a legal/equitable interest in the deceased’s assets?
When the administration of the estate is completed. * Until that time, they have no legal or equitable interest in the deceased’s assets and the PRs do not hold the assets on trust for them as they do not know which assets will be needed to pay debts and expenses
What remedies do beneficiaries have in the administration of an estate?
Administration proceedings* Beneficiaries ask a judge to ensure the estate administration is properly conductedActions to recover loss* Personal action against the PRs (note, PRs may be absolved under the will if they acted “honestly, reasonably, and ought fairly to be excused” or by agreement with the beneficiaries). * Tracing (i.e. tracing and recovering property of the estate/property representing such property from the PRs or any other recipient of it)* Personal actions against persons who have wrongly received estate assets
When will the right of a beneficiary to tracing be lost?
Against a bona fide purchaser or if inequitable to do so.
In an intestacy situation, the PRs have advertised for beneficiaries to identify themselves, and a beneficiary has not done so. The PRs distribute the estate of the deceased. If that beneficiary then comes forward and makes a claim for their share, is the beneficiary entitled to a remedy?
No, the PRs would have a defence that they acted reasonably and had no notice of the beneficiary’s claim on the estate.
