Administrative Powers of PRs

Question 1

By statute, what 3 powers do PRs have in relation to estate property?

Answer 1

1. Sell
2. Mortgage
3. Lease

Question 2

What is meant by the PR power of ‘appropriation’?

Answer 2

To use an estate asset to satisfy a legacy or other interest in the estate provided the beneficiary consents

Question 3

What power do PRs have for minor beneficiaries who are unable to give valid receipt or have assets transferred to them?

Answer 3

To appoint trustees

Question 4

PRs have the power to ______ property of the estate

Answer 4

insure

Question 5

Can PRs delegate duties to agents? If so, when would the PR be liable?

Answer 5

Yes - PRs are only liable if they fail to use reasonable care in appointing the agent

Question 6

PRs may __________ themselves for expenses they properly incur on behalf of the estate

Answer 6

indemnify

Question 7

Which power is not granted by statute, and must be given by provision in the deceased’s will?

Answer 7

To carry out the deceased’s sole trade business

Question 8

PRs have a power to invest, and can do so in almost anything if the investment meets what 2 requirements?

Answer 8

1. Suitable for the trust
2. Diversified

Question 9

Can a PR be liable to a beneficiary harmed by breach of the 2 requirements for investments?

Answer 9

Yes

Question 10

If an estate includes a gift to a minor and the gift includes the right of the minor to receive income, the PRs may apply the income for the ___________, ________ or ________ of the minor

Answer 10

maintenance, education, benefit

(known as the power of maintenance)

Question 11

PRs may ________ _____ to any beneficiary with a vested or contingent interest in capital of the estate

Answer 11

advance funds

(known as the power of advancement)

Question 12

If a PRs advances funds made on a contingent gift and the contingency fails, does the beneficiary have an obligation to pay back the advance?

Answer 12

No