Duties of PRs Flashcards
(9 cards)
what are PRs duties?
- 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
what does the duty of collecting in involve?
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)
what does the duty of administering in involve?
o Maintaining the assets
o Pay D’s debts
o Distribute the estate
who do PRs owe the duty to collect in and administer to?
Bs and creditors
what happens if the PRs fail to pay debts with due dilligence?
PRs will be liable for any loss incurred as a result of the breach (i.e. interest charged for late payment)
when does the duty to invest arise?
when assets will not be distributed for sometime
explain the duty to provide inventory and account
PRs must keep estate accounts and these should be made available for inspection following a request from B or a creditor
what can Bs/creditors do they PRs fail to provide accounts?
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.
when does the statutory duty of care arise? explain this duty
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