Administration 2 NOT COMPLETE YET

What is the general nature of a PR’s role?

Fiduciary in nature; they must act honestly, with due diligence, and within their powers.

What is a PR’s liability for breach of duty?

Personally liable for loss caused by a breach of duty.

What is a PR’s common law duty before grant?

Duty to dispose of the body (Williams v Williams).

What is a PR’s statutory duty before grant?

Duty to report estate information to HMRC and pay IHT due (ss 216, 226 IHTA 1984).

Which form must PRs complete to notify HMRC about estate assets?

Form IHT 400 for non

What must be done before a grant of representation is issued?

Deliver required information to HMRC and pay any IHT due.

Under s.25 AEA 1925, what are the main duties of PRs?

Collect and get in the real and personal estate and administer it according to law; provide an inventory and account.

To whom are PRs’ duties owed?

Beneficiaries and creditors (Tankard v Midland Bank 1942).

What does the duty to “collect in” require?

Identify and locate assets and liabilities, obtain control or legal ownership of estate assets.

What does the duty to “administer the estate” require?

Secure assets, pay debts/liabilities, meet administration expenses, pay legacies, distribute residue.

What does the duty to provide “inventory and account” involve?

Keep a record of assets, values, and steps taken (estate accounts); provide to beneficiaries/creditors if requested.

What can beneficiaries or creditors do if PRs refuse to produce accounts?

Apply to court under NCPR for an order to produce an inventory and account.

What is the duty of due diligence?

PRs must administer within a reasonable time and justify delays; expected to complete within the “executor’s year” (12 months).

What is the “executor’s year”?

12 months from death within which PRs should complete administration (s 44 AEA).

Does administration end a PR’s appointment?

No; appointment is for life. If new assets or unknown creditors/beneficiaries emerge, PRs must administer them.

What are the two sources of PRs’ powers?

Statute and the will/codicil.

What is the consequence of acting outside PR powers?

An ultra vires act is a breach of duty.

Which statute applies trustee duty of care to PRs?

s 35 Trustee Act 2000.

What does the statutory duty of care require?

Higher standard for professional PRs and those with special knowledge/experience.

When does the statutory duty of care apply?

When PRs exercise powers to invest, delegate, insure, or purchase land.

What fiduciary duties apply to PRs?

No conflict and no profit unless authorised by court or informed beneficiaries.

Can a PR buy estate assets?

No, this would be a conflict of interest.

When can a PR be paid?

If acting in professional capacity or authorised by will.

Summary of PR duties

Report to HMRC/pay IHT, collect and administer estate, provide inventory and accounts, act diligently within powers, and comply with fiduciary duties.

From where do PRs derive their powers?

From statute and from the will or codicil.

What happens if a deceased dies intestate?

Only statutory powers apply.

Do statutory powers apply when there is a will?

Yes, unless the will contains express provisions that modify or exclude them.

Do express provisions in a will override statutory powers?

Yes, express provisions take priority over statutory powers.

What is the consequence of a PR acting outside their powers?

It is an ultra vires act and a breach of duty.

Which statutes provide PR powers?

Administration of Estates Act 1925, Trustee Acts 1925 & 2000, Trusts of Land and Appointment of Trustees Act 1996.

What is the statutory power to sell, charge or lease?

Under ss 33 & 39 AEA 1925 PRs have wide powers to sell estate assets to pay debts and expenses.

What is the statutory power of appropriation?

Under s 41 AEA PRs may transfer an asset in satisfaction of a beneficiary’s entitlement, subject to consent and fairness.

When is beneficiary consent not required for appropriation?

If the will expressly removes the need for consent.

At what date is an asset valued for appropriation?

At the date of appropriation, not the date of death.

What is the rule against self

dealing in appropriation?

When does self

dealing not apply to a spouse?

What is the statutory power to insure?

Under s 19 TA 1925 PRs can comprehensively insure estate assets for full value using estate income or capital.

What is the statutory power to invest?

Under s 3 TA 2000 PRs have the general power of investment, including power to acquire UK freehold or leasehold land.

What must PRs consider when investing?

The standard investment criteria (s 4 TA 2000) and the duty to obtain advice (s 5 TA 2000).

How often must investments be reviewed?

Regularly, usually annually.

What is the statutory power to charge for services?

Under s 29 TA 2000 professional PRs may charge reasonable remuneration if not acting alone and with co

When may lay PRs charge for services?

Only if an express power in the will allows it.

Can PRs reimburse themselves for expenses?

Yes, under s 31 TA 2000 PRs can recover expenses properly incurred, but not charge for their time.

What is the statutory power to delegate?

Under s 11 TA 2000 PRs may appoint agents and delegate powers, except core functions (distribution decisions, fee allocation, trustee appointments).

What requirements apply when PRs delegate?

Delegation must be in writing, with a policy statement under s 15 TA 2000, and kept under review (s 22).

Can a PR appoint a beneficiary as an agent?

No, a beneficiary cannot be appointed as agent.

What is the power to appoint trustees for minors?

Under s 42 AEA PRs may appoint trustees to hold a legacy for a minor until 18 instead of retaining it themselves.

Can PRs accept a receipt from a parent or guardian of a minor?

Yes, under s 3 Children Act 1989, and wills often include express receipt provisions.

Can a will provide for minors over 16 to give valid receipt?

Yes, an express clause permitting receipt by minors aged 16+ is effective.

What power do PRs have to run a business?

Limited common law power to sell a sole trader business as a going concern within one year of death.

How can PRs continue running a business more broadly?

Only with an express power in the will.

What happens to business interests held as company shares or partnership shares?

The company articles or partnership agreement usually govern succession.

What are STEP provisions in wills?

A standard set of express administrative powers drafted by the Society of Trust and Estate Practitioners, often incorporated into wills.

Can joint PRs act alone?

They must generally act jointly and unanimously, except a single PR may transfer or sell personal assets.

Can a sole PR deal with stocks and shares held jointly?

No, joint authority of all PRs is required.

Acting ultra vires amounts to

BREACH