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Administration: Rights of Beneficiaries & Liabilities of PRs - Coggle…

- - - - types of citation
        
        1. citation to take probate
        
        Purpose: Used when an executor, having intermeddled in the estate (e.g., by selling the deceased’s assets), fails to apply for a grant of probate and shows no intention to do so.
        
        Effect:
        
        The cited executor is compelled to apply for a grant of probate.
        
        If the executor fails to act without good reason, the citor can apply to the court for an order:
        
        Allowing the executor to be passed over and
        
        Granting letters of administration with the will annexed to another party entitled under NCPR 1987, Rule 20..
        
        2. citation to accept/refuse grant
        
        Purpose: Clears off a person with a prior right to a grant who has not acted.
        
        Effect:
        
        The cited person must either accept the grant or renounce their entitlement.
        
        If they fail to act, the citor may apply for a grant themselves under NCPR 1987, Rule 20.
        
        3. citation to propound will
        
        Purpose: Ensures a will is authenticated and proved in court.
        
        When Used:
        
        A person believes there exists a later will diminishes their entitlement under an earlier will or intestacy.
        
        The citor cites the executors and beneficiaries of the later will to propound (prove) it.
        
        Effect:
        
        If the cited parties fail to act or proceed diligently, the citor can apply to the court for a grant as if the later will were invalid.
- - - - Conflict of Interest:
        If a PR purchases property from the estate, the transaction is voidable by the beneficiaries within a reasonable time unless properly authorised.
      - unauthorised profits
        PRs must not retain profits or commissions derived from managing the estate without proper authorisation.
        For example, if a PR receives commission from a stockbroker for selling estate shares:
        The commission must be paid to the estate unless:
        
        Authorised by the deceased’s will.
        
        Sanctioned by a court order.
        
        Approved by all adult beneficiaries.
  - - - misuse of assets- PRs use estate assets for own benefit
      - maladministration-
        PRs fail to properly administer the estate, e.g. distributing assets incorrectly or failing to properly collect and manage estates property (e.g. in line with intestacy rules)
      - negligence- PRs fail to carry out their duties with reasonable care, such as not taking necessary actions to safeguard the estate
        e.g. PRs fail to monitor volatile investments in the estate, leading to a significant decline in value due to delays in selling them.
    - - 1. s.61 Trustee Act 1925
        
        Relief for honest and reasonable conduct: The court may relieve PRs of personal liability if they acted honestly and reasonably, and it would be fair to excuse their actions in the context of the devastavit.
        
        Additionally, if PRs failed to seek guidance from the court but acted reasonably, they may be excused.
      - 2. exclusion clause in will
        clause modifies or excludes liability for PRs
      - 3. Acquiescence of Beneficiaries:
        If an adult beneficiary, fully aware of the facts, consents to the PR’s breach of duty, they cannot later bring a claim against the PR for that breach. This is known as acquiescence.
      - 4. protection against unknown or missing claimants
        
        PRs can avoid liability for failing to distribute estate wihtout knowing about potential B if followed procedure in s.27 ( adverts for missing bs)
        
        no protection for where bs known but missing- need benjamin order,r insurance or indemnity from bs
        
        no protection for family provision claimants- wait 6 months
      - 5. limitation-
        
        a claim by an unpaid/underpaid b to recover share of interest in estate must be made within 12 years from date when right to estate accrued (testators death)
        
        no time limit where PRs carried out fradulent breaches or where took estate property for own use
- - - - 12 years time limit when action arose (misdistribution/ recipient acquired assets) for claims
- - - - Court’s Discretion: The court's primary consideration in removing or substituting a PR is the welfare of the beneficiaries. This means that if the PR's actions are detrimental to the interests of the beneficiaries or there is a significant conflict of interest, the court may remove them to ensure the proper administration of the estate.
- - - - Paying a legacy before advertising for creditors, leaving insufficient funds to settle the debts.
        
        Failing to collect and preserve the estate's assets.
        
        Spending an excessive amount on the deceased's funeral expenses.
        
        Paying debts in the wrong order, especially when the estate is insolvent