duties of PRs Flashcards
What is the PRs’ duty regarding collecting the deceased’s assets?
PRs must collect the monies due and other assets of the deceased within a reasonable time. They are only liable for loss resulting from their unreasonable conduct.
What is the PRs’ duty to administer the estate?
PRs must take reasonable steps to preserve the estate, realize any investments, pay off debts and legacies, and distribute the residue per the will or intestacy rules, all within the executor’s year (12 months).
How does the Trustee Act 2000 apply to PRs?
It requires PRs to act with reasonable care and skill, considering any specialist knowledge or experience, and to act in the best interest of beneficiaries and comply with the terms of any trust imposed.
What is the PRs’ liability for breach of duty of care?
PRs may be liable to beneficiaries or creditors for losses arising from misappropriation of assets, maladministration, or negligence, unless the will excludes liability or the court relieves them of it.
Under what circumstances can a court relieve a PR from liability for breach of duty?
If the court is satisfied that the PR has acted honestly and reasonably and ought fairly to be excused for the breach.
