Administration of Estates
It is the duty of executors and administrators (personal representatives) to collect and manage the estate of the deceased in accordance with the law.An administrator has all the powers of an executor. When the High Court grants administration with the will annexed, the will shall be performed and observed by the administrator in the same manner as if a probate had been granted to them as an executor
The executor must, if required by the High Court exhibit a full inventory of the estate and, when required, render an account of the administration of the estate to the court. They should deliver the grant of representation to the court when required.
Persons making payments or dispositions in good faith under a grant are protected from any defect in circumstances affecting the validity of the grant. Payments and dispositions made in good faith to the personal representative before a valid discharge, even after the grant is revoked, are considered valid discharge to the person making them.
A personal representative who acted under a revoked grant may retain and reimburse themselves for payments and dispositions made, which the subsequently appointed grantee could have properly made.
If any person, to the detriment of creditors, deals with the estate of a deceased person or incurs any liability, they are to be held accountable as if they were an executor. Where a personal representative wastes or misappropriates any part of the deceased’s estate, the personal representative is liable for that waste or conversion to the extent of available assets, similar to how the defaulting party would be liable
These rules enable proceedings to be initiated against the estate of a deceased person in the county court where no grant has been made. They may allow proceedings related to a person, treated as if deceased, to be commenced against their estate, regardless of whether a grant of probate or administration was made before the commencement. These rules also enable proceedings initiated and treated as commenced against the estate to be maintained against the appointed representative of the estate.
The Wills and Administration Proceedings, Northern Ireland Order 1994, outlines basic rules for making and interpreting wills. Rules of court may specify procedures allowing judgments in actions related to a deceased person’s estate to be binding on individuals affected by the judgment who wouldn’t otherwise be bound by it.
Additionally, if a question of construction arises from a trust or will, and a written opinion from a barrister of at least 10 years standing has been obtained by the personal representative or trustees, the High Court may, without a hearing, make an order authorizing those individuals to act based on the opinion. The High Court won’t make such an order if there’s a dispute that would make it inappropriate without a hearing.
In a probate action in the High Court where the validity of one or more wills is questioned, and consent for the pronouncement has been given on behalf of every relevant beneficiary, the court may pronounce accordingly. A probate action in this context involves actions related to the grant of probate or letters of administration or revocation of such grants or actions regarding the validity of a will.
When an application related to a deceased person’s estate is made to the High Court, the court may appoint or substitute a personal representative to act in place of the existing representative. It may also appoint additional representatives or, if there are multiple existing representatives, terminate the appointment of one but not all of them.
Certain financial institutions are entitled to make payments of relatively small amounts without the grant of probate. A death certificate is required. The limits are relatively small (£5,000). In broad terms, the exemptions apply to financial institutions, state savings schemes, building society accounts.
Certain types of entities permit a statutory nomination. The limits are relatively small. They apply to industrial and provident societies, friendly societies. A nomination is a direction to the trustee to make payments on death.
Nominations may be available under pension and insurance policies. In intestacies, trustee arrangements are made so that the deceased may make nominations to the trustee in favor of a third party. They may not be strictly speaking, binding, but the trustee will generally follow directions. In some cases, they may be binding.
Jointly-owned property passes automatically to the surviving joint tenant. This may happen with land or bank accounts. Generally, proof of death is all that is required.
The Administration of Estates (Small Payments) Act allows for payment small amounts on production of evidence of death without production of a Grant of Probate or Administration. The rate threshold applicable is £5000, which has not been increased since 1985. The rate may be increased by the Minister for Finance.
The facility applies to authorised disposal on death without representation under the Industrial and Provident Societies Act There are similar provisions under the Credit Unions Act.
There are similar provisions for nominations under various statutory pension schemes. Nominations are possible under the industrial and provident societies legislation.