Personal Reps - Devastavit

Question 1

What is a breach of PRs duty called?

Answer 1

Devastavit

Question 2

What are the three main types of liability?

Answer 2

Misappropriation of assets

Maladministration

Failure to safeguard assets

Question 3

What is misappropriation?

Name a case

Answer 3

Using estate assets for personal use

Re Morgan 1881

Question 4

What is maladministration?

Name a case

Answer 4

Misapplication - applying estate assets albeit in good faith otherwise than in order referred to in will

Unjustified expenses - PRs should only incur reasonable expenses

Wasting the assets - Giving asset away or paying a debt not bound to pay

Thompson v Thompson 1821 - surrendered leasehold estate instead of selling at a premium

Question 5

Other examples of maladministration

Answer 5

Failure to obtain grant promptly

Distribute estate correctly - re Whorwood 1887

Question 6

Name a case where PR failed to safeguard assets

Answer 6

Job v Job 1877

Question 7

How can a PR be protected from liability?

Answer 7

Exclusion clause in will restricting PRs liability except for fraudulent acts

s61 Trustee Act 1925 - court power to grant relief if PR acted honestly

s62 Trustee Act 1925 - court order PR to indemnify loss

s27 Trustee Act 1925 - advertisement in London Gazette and local newspaper - limit 2 months

Limitation Act 1980 - beneficiary claim 12 years and creditors 6 years

Question 8

Two important cases of devastavit

Answer 8

Re Diplock 1948 - gift void - tracing is not barred by limitation

Armitage v Nurse 1998 - exclusion clause