Administration - PR Powers Flashcards
Why might PRs need to sell estate assets early in administration?
To raise funds for paying debts, IHT, or meeting expenses.
What are some key statutory powers of PRs?
- Sell, charge or lease estate property
- Appropriate assets
- Insure assets
- Invest assets
- Charge for services
- Delegate powers
- Appoint trustees
What is appropriation?
Using a specific asset to satisfy a beneficiary’s entitlement.
What conditions apply to appropriation?
- Consent of the recipient
- No prejudice to other beneficiaries
- Valued at date of appropriation (not date of death)
What is the PRs’ investment duty?
To preserve estate value by investing appropriately, especially if assets are retained for a time.
When can a professional PR charge for services?
- If not acting alone
- If co-PRs consent in writing
Can PRs recover their expenses?
Yes, for properly incurred expenses (e.g. travel), not for their time spent.
Can PRs delegate duties to agents?
- Distribution
- Allocation of income/capital
- Appointment of trustees/nominees
When might PRs need to appoint trustees?
When a legacy is given to a minor, PRs may appoint trustees to hold the gift until the minor turns 18.
Can parents give valid receipt for gifts to minors?
Yes, though express will provisions are clearer.
What can PRs do if the deceased ran a business?
Shareholder: company continues
Partner: governed by partnership agreement
Sole trader: may sell business as going concern within 1 year, but cannot access other estate assets and may be personally liable
Can PRs manage a business?
Not unless the will includes an express power to run the business.
Can joint PRs act alone?
Generally, PRs must act jointly, unless the will provides otherwise. But one PR may act alone to pass title in some cases (e.g. chattels).
Can a sole PR transfer jointly registered shares alone?
No. Joint PRs must act together to deal with jointly registered stocks or shares.
