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Chapter 6: Powers or Personal Reprentatives - Coggle Diagram
Chapter 6: Powers or Personal Reprentatives
General powers of Personal Representatives (PRs)
Executor Powers (if a will exists):
Distribute assets: Executors distribute the estate according to the will.
Sell Assets: Executors have the authority to sell property or other assets (subject to the will's provisions).
Manage the estate: Executors can apply for a grant of probate, administer the estate and deal with financial obligations
Administrator Powers (if no will exists)
Intestate distribution: Administrators dispute the estate according to the intestacy rules (Administration of Estates Act 1925)
Sale of estate assets: Adminstrators can sell estate property to pay debts or provide distributions
Specific Powers of Personal Representatives
Power to sell Real property:
Executors can sell real estate but must act in accordance with the will or intestacy rules and obtain court approval in some cases.
Power to invest estate funds
Executors/adminstrators can invest the estates funds but must do so prudently
Investments should be made in low-risk, income-generating assets.
Power to Compromise Claims:
Execuotrs/adminstrators can compromise claims made against the estate if it benefits the estate or resolves disputes efficiently
Limitation on the Powers of PRs
Restrictions on Distributions:
PRs cannot distribute estate assets until debts, taxes and liabilities have been paid.
Distribution is subject to the terms of the will or intestacy rules.
Court Supervision:
In certain cases, PRs may need court approval for actions (eg, sale of family home or complex investments)
Fiduciary duty
PRs must act in the best interest of the beneficiaries and avoid conflicts of interest
Failure to do so can result in personal liability.
Key Laws:
Administration of Estates Act 1925: Governs the powers and duties of PRs in intestacy and estate administration
Trustee Act 1925: Provides guidelines for how PRs can manage and invest estate assets.
Wills Act 1937: Covers the powers and duties of executors when there is a valid will.