3): The Planning, Management and Progression of the Administration of an Estate Including Claims under the Inheritance (Provisions for Family and Dependants) Act 1975 Flashcards
(20 cards)
What are the general duties of a personal representative (PR)?
Collect the deceased’s real and personal estate
Administer the estate lawfully
What are the PR’s pre-grant duties?
Provide info for IHT purposes
Arrange disposal of the deceased’s body
What are the PR’s post-grant duties (s.25 AEA 1925)?
Identify liabilities and assets
Gain control of estate assets
Pay debts and expenses
Convert assets where necessary
Safeguard and properly distribute the estate
What are the PR’s duties to the court under s.25
Provide full inventory under oath (if required)
Account for the administration
Deliver the grant to the High Court if directed
What is the statutory duty of care under Trustee Act 2000, s.35(1)?
Act with reasonable care and skill
Higher standard if acting professionally
When is a PR personally liable (including devastavit)?
For breach of duty (devastavit) causing loss or unauthorised profit
For improper administration or failure to pay creditors/beneficiaries
Liable to make good any loss or account for gain
How can PRs protect themselves from unknown claims?
Advertise under s.27 Trustee Act 1925
Wait 2+ months before distribution
Retain assets or take out insurance
Apply for a Benjamin order (for missing persons)
Wait 6 months to avoid I(PFD)A 1975 claims
What is included in the PR’s duty to collect the estate?
Personalty (cash, jewellery, cars, etc.)
Land (held on trust under s.1 TLATA 1996)
What must be paid before distributing the estate?
Outstanding debts (secured → unsecured)
IHT and liabilities
Administration and testamentary expenses
Reasonable funeral expenses
What gifts are paid before distribution of the residuary estate?
Specific legacies
Pecuniary legacies
Can a PR delay paying a legacy?
Not after the executor’s year (1 year from death)
PRs not bound to pay earlier unless assets are available and legatee is of age
What is the executor’s year?
A period of 1 year from the date of death during which PRs are not bound to distribute the estate.
What must PRs do before final distribution?
Distribute estate per will or intestacy
Ensure protection against late claims
Prepare estate accounts signed by residuary beneficiaries (releases PRs from liability to beneficiaries)
What is the purpose of the Inheritance (Provision for Family and Dependants) Act 1975?
Allows specific individuals to claim financial provision from an estate
Applies where no reasonable provision was made and claimant was dependent
What is the time limit for making a claim under the 1975 Act?
6 months from grant of representation
Extensions allowed only in exceptional circumstances
Who can apply for financial provision under the 1975 Act?
Surviving or former spouse/civil partner (if not remarried)
Child or person treated as child of the family
Any person maintained by deceased
Cohabitants (for 2 years pre-death as if married/civil partners)
What are the two stages in the court’s approach to a claim under the 1975 Act?
Was reasonable provision made?
If not, what provision should now be made?
What is the standard of provision used by the court?
Higher for surviving spouse/civil partner (reasonable in all circumstances)
Lower for others (reasonable for maintenance only)
What factors are considered under s.3 when assessing ‘reasonable financial provision’?
Applicant’s current and future financial needs
Needs of others claiming or benefiting
Obligations owed by deceased
Estate size and nature
Physical or mental disability of applicant/beneficiaries
Any relevant conduct or circumstances
What orders can the court make under the 1975 Act?
Periodical payments
Lump sum
Transfer of specific property
