Personal Representatives
Wills and Administration of Estates > Personal Representatives
What is Personal Representatives in SQE1?
What Are Personal Representatives?
Candidates often wrongly claim administrators have authority before the grant is issued on SQE1 — a frequently tested distinction. A personal representative is the person (or persons) authorised to administer a deceased person's estate. There are two types: executors (appointed by the will) and administrators (appointed by the court where there is no will or no valid appointment of an executor). Both types owe fiduciary duties to the beneficiaries and creditors of the estate.
Key Principles for SQE1
- Executors: appointed by the testator in the will. Their authority derives from the will itself and exists from the moment of death.
- Administrators: appointed by the court by a grant of letters of administration. They have no authority until the grant is issued. Priority is determined by Rule 22 of the Non-Contentious Probate Rules 1987. Understanding grants of representation and intestacy is essential, as is knowledge of the broader wills and administration of estates framework.
- Duties of PRs: collect and get in the assets; pay debts, funeral expenses, and administration expenses in the correct order; pay legacies; distribute the residuary estate; keep accounts; and act impartially between beneficiaries. Debt payment order (AEA 1925, s.34 and Sch.1 Pt II): secured creditors (from the charged asset), funeral and testamentary expenses, preferential debts, ordinary unsecured debts, deferred debts. Power to appropriate assets (s.41 AEA 1925) - subject to consents. Power of sale (s.39 AEA 1925): PRs have a general power to sell estate assets.
- Personal liability: PRs are personally liable for loss caused by breach of duty. They may be liable to creditors if they distribute without paying debts.
- Section 27 Trustee Act 1925 (statutory notices): PRs can protect themselves by advertising for creditors in the London Gazette and a local newspaper and waiting at least two months before distributing.
- Limitation period: 12 years for actions by beneficiaries against PRs (s.21 Limitation Act 1980).
Exam tip
Executors have authority from death; administrators only have authority from the grant. Administrators must apply under Rule 22 NCPR 1987 in strict order of entitlement. Section 27 Trustee Act 1925 advertisements (in the London Gazette and a local newspaper, then waiting two months) are critical protection against personal liability for unknown debts — failing to advertise exposes PRs to personal liability. Remember: PRs must follow the statutory order for paying debts under AEA 1925 Schedule 1 Part II.
How This Appears in SQE1 Questions
SQE1 questions test the distinction between executors and administrators, the priority rules for appointing administrators, and the duties PRs owe. Examiners test this distinction repeatedly. A frequent trap is stating that administrators have authority before the grant - they do not. Questions also test whether a PR has protected themselves with s.27 notices before distributing.
Quick Example Scenario
An executor distributes the entire estate to the beneficiaries without advertising for creditors under s.27 Trustee Act 1925. Six months later, an unknown creditor comes forward with a valid debt of £50,000. Because the executor did not give statutory notices under s.27, they are personally liable to the creditor. Had the executor advertised and waited two months, they would have been protected from personal liability for debts of which they had no notice.
Common Mistakes Students Make
- Assuming administrators have authority before the grant of letters of administration - they do not; only executors have authority from the date of death.
- Forgetting to apply the statutory order for paying debts under s.34 AEA 1925.
- Overlooking the protection offered by s.27 Trustee Act 1925 - failing to advertise exposes PRs to personal liability.
- Confusing the roles of executors and trustees - PRs administer the estate; trustees manage ongoing trusts created by the will.
Quick Summary
- This topic combines statutory knowledge with practical application.
- Master the key principles, understand the statutory framework, and practise applying these rules to realistic client scenarios.
Want to test this now? Try a few SQE1-style questions below before moving on.
Test Yourself
Test yourself
Quick check questions based on this article.
Question 1
Scenario
A woman dies leaving a valid will appointing her solicitor as sole executor. The estate comprises a house valued at £350,000, a car worth £8,000, jewellery worth £15,000, a bank account with £42,000, and various household items. The will leaves specific legacies of £10,000 each to three named charities and the residue to her nephew. The solicitor obtains a grant of probate and begins to administer the estate. The woman's neighbour contacts the solicitor to say that the woman owed her £5,000, which was lent informally two years ago with no written agreement. The estate has outstanding debts comprising a mortgage of £120,000, credit card debts of £3,500, and a utility bill of £280. The nephew is anxious to receive his inheritance quickly and asks the solicitor to distribute the estate immediately. The solicitor has placed statutory advertisements in the London Gazette and a local newspaper.
What should the solicitor do before distributing the estate to the beneficiaries?
Question 2
Scenario
A solicitor has been appointed as the sole executor of a deceased client's estate. The estate includes a residential property, a portfolio of shares, two bank accounts, and a classic car. The will leaves specific legacies of £20,000 each to three named charities and the residue to the deceased's nephew. The solicitor has obtained a grant of probate and has begun collecting in the assets. One of the bank accounts contains £45,000 and the other £12,000. The share portfolio is valued at £80,000 but has been falling in value since the date of death. The property is valued at £320,000, and the classic car is worth £15,000. The nephew has asked the solicitor to sell the shares immediately to prevent further losses. The solicitor has also received a claim from a creditor alleging that the deceased owed £35,000 under an unsecured loan agreement. The solicitor is aware that the deceased's former business partner may also have a claim but has not yet received any formal notification. The deceased's neighbour has mentioned that the deceased verbally promised to leave the classic car to him, but this is not reflected in the will. The solicitor has been administering the estate for three months.
What should the solicitor do in relation to the creditor's claim before distributing the estate?
Question 3
Scenario
A solicitor is acting as executor of a deceased client's estate. During the administration, the solicitor discovers that the estate includes a residential property worth £280,000. The solicitor's brother-in-law expresses interest in purchasing the property and offers £270,000, which the solicitor considers to be a fair price given the current market conditions. The residuary beneficiary is the deceased's daughter, who lives abroad and has asked the solicitor to handle the sale. She tells the solicitor that she trusts his judgement and is happy for him to proceed with any sale that he considers reasonable. The solicitor has not informed the daughter that the prospective buyer is his brother-in-law. The solicitor's firm has a policy requiring disclosure of conflicts of interest, and the SRA Code of Conduct requires solicitors to act in the best interests of their clients. The solicitor proceeds with the sale to his brother-in-law without obtaining an independent valuation or informing the daughter of the connection. A neighbour of the deceased later tells the daughter that similar properties in the area have recently sold for between £290,000 and £310,000.
Which of the following best describes the solicitor's position?
Practice with full exam-style questions
Related Topics
- Grants of Representation for SQE1
- Intestacy for SQE1
- Inheritance Tax for SQE1
- SQE1 Wills and Administration of Estates: Complete Guide
Practise Personal Representatives Questions for SQE1
Want to solidify your knowledge? ActusPrep provides realistic SQE1 questions tailored to this topic.
👉 Try our free demo: https://actusprep.com/demo 👉 View plans and pricing: https://actusprep.com/pricing