Administration - PR duties Flashcards
What is the primary statutory duty of a personal representative (PR)?
A PR must collect and get in the real and personal estate of the deceased and administer it according to law.
Who are PRs accountable to during administration?
The estate’s beneficiaries and creditors
Is the role of PR fiduciary in nature?
Yes. PRs must act honestly, with loyalty and in the best interests of beneficiaries and creditors.
What duties must PRs comply with before the grant is issued?
- Dispose of the body
- Notify HMRC of assets and liabilities
- Pay IHT
Complete Form IHT400 if the estate is not excepted
What is the duty to “collect in” the estate?
PRs must identify, locate, and secure the deceased’s assets and identify liabilities and creditors.
What is the duty to “administer” the estate?
Secure the assets, pay debts and expenses, pay legacies, and distribute residue to those legally entitled.
What is the “executor’s year”?
PRs should normally complete estate administration within 12 months from the date of death
What if administration takes longer than 12 months?
PRs must justify the delay. Delay alone is not automatically a breach, but unreasonable delay can be challenged.
Is a PR’s appointment time-limited?
No. A PR’s appointment is for life, and they must act if additional assets or claims arise later.
Where do PRs get their powers from?
From statute and the deceased’s will or codicil.
What happens if a PR acts beyond their powers?
It is an ultra vires act and a breach of duty.
What are the two core fiduciary duties of PRs?
- No conflict: PRs must not place themselves in conflict with the estate.
- No profit: PRs must not profit from their role unless authorised.
When can PRs be paid for their services?
If they act in a professional capacity, or if authorised in the will.
Can a PR purchase estate property?
No. Even if at market value, this breaches the no conflict rule unless authorised.
