Duties of a Personal Representative Flashcards
(21 cards)
Where do PR duties arise from?
Both statute and common law.
When is a PR personally liable for loss?
If the loss is caused by a breach of duty.
PR duties before issue of grant?
Funeral and informing HMRC and paying IHT
What is the PR duty to HMRC?
Notify HMRC of assets and liabilities using form IHT400.
When is form IHT400 due?
Before Grant of Representation.
Duties of PR under the grant?
Collect estate, provide inventory and account of estate assets.
To whom are duties under the grant owed?
Beneficiaries and creditors.
How does a PR comply with duty to collect?
Identify and locate assets and liabilities, obtain control or legal ownership of estate.
How does PR comply with duty to administer?
Keep assets secure, pay debts, meet expenses, pay legacies, distribute residue.
What assets fall under PR duty?
Succession estate only; joint tenant property excluded.
What is the duty to provide inventory and account?
Keep list of assets/values (inventory) and record of administration steps (account).
Are beneficiaries/creditors entitled to see Estate Accounts?
Yes.
What if PR refuses to disclose Estate Accounts?
Court application can be made for an order.
What is the duty of due diligence?
Act diligently within a reasonable time.
What is the executor’s year?
PR should distribute estate within 12 months of death (not strict breach if longer).
How long does PR duty last?
For life.
Where do PR powers come from?
Will/Codicil or statute.
When does the statutory duty of care apply to PRs?
When exercising power to invest, delegate, insure, or purchase land.
When is higher duty of care imposed on PR?
If PR is professional or has specialist knowledge.
What are the fiduciary duties of PRs?
Avoid conflicts of interest; not profit unless authorised or acting in professional capacity.
Can PR purchase an estate asset?
Only with court or beneficiary consent.
