Administration of Estates

Introduction

Once the grant has issued (Chapter 7), the **personal representatives ('PRs')** have authority to administer the estate. **Administration** is the body of tasks that must be performed before the PRs can distribute the residue to the beneficiaries: **collecting in the assets**, **paying the debts and liabilities** (including tax), **paying the legacies**, and **accounting to the beneficiaries**. This chapter is in two parts. **Part A** (sections 8.2 to 8.10) deals with administration. **Part B** (section 8.11) deals with the **Inheritance (Provision for Family and Dependants) Act 1975**, the statute by which members of the deceased's family and dependants can claim reasonable financial provision from the estate where the will or the intestacy rules fail to provide it.

Assessment focus

For the SQE1 FLK2 assessment you must be able to advise on the **practical administration of an estate** and on the **I(PFD)A 1975**. The most frequently tested points are: the mechanics of **s.27 Trustee Act 1925 advertisements** (the two-month clock runs from the advertisement, not the death or the grant); the **statutory order for payment of debts** on solvent and insolvent estates (**AEA 1925 Sch 1 Parts II and I**); **s.35 AEA 1925** primary liability of the charged asset (and **Re Valpy**); **abatement** of pecuniary legacies (**Petterson v Ross**); the **six categories of eligible applicant** under **s.1(1) I(PFD)A 1975**; the **strict six-month time limit** under **s.4** (running from the grant); the two **standards of provision** under **s.1(2)**; and the **Ilott** approach to adult-child claims. Questions are single best answer questions set in **realistic client scenarios**: you must apply the rules to the facts, not merely recite them.

Study tips

1) Memorise the **seven-class solvent-estate order** (Sch 1 Pt II) — undisposed-of property bears the debts **first**; specific gifts are **most protected**. 2) For **s.27 TA 1925**, fix in mind that the **two months runs from the advertisement date**, and distribution also needs the grant. 3) For **s.35 AEA 1925**, a **general** 'pay my debts' direction is **not** enough to shift a mortgage to residue — **Re Valpy** requires a clear, specific direction. 4) Learn the **six s.1(1) applicant categories** and the **two-year** cohabitation threshold; remember the fallback to **s.1(1)(e)** maintenance. 5) The **s.4 six-month clock runs from the grant, not the death**, and the court's discretion to extend is exercised cautiously (**Berger**; **Sargeant**). 6) Distinguish the **surviving-spouse standard** (whether or not required for maintenance; **divorce cross-check**) from the **maintenance standard** (**Ilott v Blue Cross**).