Distribution of the estate (pecuniary legacies) (Administration of estates)- FS

Question 1

When can personal representatives distribute pecuniary legacies?

Answer 1

After paying the estate’s debts, funeral expenses, testamentary expenses, and distributing specific legacies.

Question 2

What is a Pecuniary Legacy

Answer 2

A gift of a fixed sum of money in a will, such as £20,000 to a named beneficiary or charity.

Question 3

What happens when a will contains express instructions for payment of pecuniary legacies?

Answer 3

Executors must follow those instructions and pay the legacies from the designated source, usually the residuary estate

Question 4

What is the general rule for funding pecuniary legacies where the will gives no instructions?

Answer 4

Pecuniary legacies should be paid from the residuary estate, using:

1. Cash
2. Personal property (personalty)
3. Real property (realty), in that order

Question 5

What should executors do when there is a partial intestacy and an undisposed asset?

Answer 5

Use the undisposed assets before touching the residue to pay pecuniary legacies.

Question 6

If cash in the residuary estate is insufficient, what should executors use next for pecuniary legacies?

Answer 6

Personal property (e.g., artwork, jewelry), and then real property (e.g., land or houses).

Question 7

Who bears the cost of transferring pecuniary legacies?

Answer 7

The estate typically bears this cost, unless the will states otherwise.

Question 8

Priority Order for Paying Pecuniary Legacies When No Instructions Are Given?

Answer 8

1. Use any undisposed assets (if partial intestacy)
2. Use cash in the residuary estate
3. Use personal property in the residuary estate
4. Use real estate (realty) in the residuary estate

Question 9

What must executors consider before selling estate assets to pay pecuniary legacies?

Answer 9

They must ensure all debts, taxes, and specific legacies have been satisfied first.

Question 10

In the absence of instructions, which asset types are prioritized for pecuniary legacies: cash, art, land?

Answer 10

In order: cash first, then art (personalty), then land (realty).

Question 11

What must the executors determine regarding a partnership when a partner dies, and where is the guidance for asset distribution typically found?

Answer 11

The executors must determine the deceased partner’s share of the business as part of estate administration. The partnership deed should specify how the business assets are to be distributed on a partner’s death.

Question 12

When can executors appropriate estate assets to beneficiaries, and what is required for the appropriation to be valid?

Answer 12

Executors may appropriate assets that are not specifically bequeathed in the will to beneficiaries in satisfaction of their entitlement under the estate. To do so validly, they must obtain the consent of the beneficiary in question