Duties_of_Administrator

Factors/issues which may affect situation: • Beneficial Entitlements on Intestacy (What relation does the beneficiary in question have to the Deceased') There is a priority order of distribution: S 46 Administration of Estates Act lists the various categories of beneficiary in order of priority. The General Rule is that the estate is shared by relatives in the higher category to the exclusion of relatives in a lower category. This may affect their claim • Duties and Liabilities of Personal Representatives (Administrator) Duties Covered by statute in both Administration of Estates Act 1925, (s25) and Trustee Act 2000. S39 of AEA gives Personal Representatives (PRs) all the powers of trustees for sale. Duties under s 25 AEA 1925: • Duty to collect assets (and prepare accounts) • Duty to discharge liabilities • Duty to administer residue Duty under s.41 AEA 1925: • Must not prejudicially affect any property specifically devised or bequeathed and the appropriation must be “just and reasonable” having regard to respective rights of the persons interested. Duty under s 9 AEA 1925: • PRs have a duty when required to produce and account of the administration of the estate to the court. Other points: • They must hold an even hand between all beneficiaries. • Must act prudently and properly in the administration of the estate as a whole giving must have regard to unanimous wishes of adult beneficiary. • From the date of the letters of administration an administrator accepts personal liability for loss arising from any breach of duty committed. (rule known as devastavit). • Fiduciary duties: The general statutory trust fiduciary duty arises here as well as rules derived from common law: Bray v Ford [1896] AC 44 : • Trustee not permitted to receive any benefit from his position as trustee(except when paying expenses outlined in AEA) • The duties he owes beneficiaries must not in any circumstances be permitted to come into conflict with his personal interests; should this be the case, he would be liable to account to the beneficiaries to any profits made by him. Other points: If found liable for failing to perform their fiduciary duties the fiduciary is a breach of trust and thus may be liable: • For any loss or depreciation of the account that results from his actions or inactions, or any profit made by him; • Or any profit that would have occurred if there had been no breach Such duties include appropriate consent of beneficiaries. • Other duties of care required by Administrator of intestate: General duty of care is required as outlined in s .1 Trustee Act 2000: The duty of care: (1)Whenever the duty under this subsection applies to a trustee, he must exercise such care and skill as is reasonable in the circumstances, having regard in particular— (a)to any special knowledge or experience that he has or holds himself out as having, and (b)if he acts as trustee in the course of a business or profession, to any special knowledge or experience that it is reasonable to expect of a person acting in the course of that kind of business or profession. (2)In this Act the duty under subsection (1) is called “the duty of care”. (Information taken from: C Butcher, Probate Practical Manual, Sweet and Maxwell M, Halliwell, Equity and Trusts, Old bailey.