Duties of PRs

Question 1

what are PRs duties?

Answer 1

• duty to collect in & administer the estate
• duty to pay debts with due diligence
• duty to invest
• duty to provide inventory and account
• statutory duty of care

Question 2

what does the duty of collecting in involve?

Answer 2

o Identifying D’s liabilities and assets
o Obtaining payment of any debts due to D
o Gain control of assets (and convert to money where appropriate)

Question 3

what does the duty of administering in involve?

Answer 3

o Maintaining the assets
o Pay D’s debts
o Distribute the estate

Question 4

who do PRs owe the duty to collect in and administer to?

Answer 4

Bs and creditors

Question 5

what happens if the PRs fail to pay debts with due dilligence?

Answer 5

PRs will be liable for any loss incurred as a result of the breach (i.e. interest charged for late payment)

Question 6

when does the duty to invest arise?

Answer 6

when assets will not be distributed for sometime

Question 7

explain the duty to provide inventory and account

Answer 7

PRs must keep estate accounts and these should be made available for inspection following a request from B or a creditor

Question 8

what can Bs/creditors do they PRs fail to provide accounts?

Answer 8

If PRs refuse or the accounts are unclear/inaccurate, B/creditor can apply to the court for an inventory or account

NB: there is no duty to disclose other documents. This is at the PRs discretion, but B could apply to the court.

Question 9

when does the statutory duty of care arise? explain this duty

Answer 9

PRs can exercise the same powers as trustees listed under Sch. 1 Trustee Act 2000:
o Power of investment
o Power of acquisition of land
o Power to appoint an agent
o Power to insure

PRs (and trustees) are bound by the statutory duty of care when exercising these powers, i.e.:
o Exercise reasonable skill & care in the circumstances
o Professional PR  any special knowledge it is reasonable to expect them to have