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...