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Question 1
Roger was named the executor of his father Luis' will. Coupled with the demands of his job as a deputy sheriff, Roger found the task of being a personal representative to be too time consuming. As such, Roger relinquished his duties to his cousin, Kurt. Roger's action was permissible.
Correct
Incorrect!
Correct If the personal representative tires of the duties associated with administering the estate, the person cannot simply resign. Rather, the court must accept the resignation before the person is free to quit. Here, Roger did not get court approval before he turned over the job to Kurt. As such, Roger's action was not permissible.
Incorrect! If the personal representative tires of the duties associated with administering the estate, the person cannot simply resign. Rather, the court must accept the resignation before the person is free to quit. Here, Roger did not get court approval before he turned over the job to Kurt. As such, Roger's action was not permissible.
Question 2
Harold was appointed the executor of his deceased brother Ned's estate. Harold was the sole beneficiary of Ned's estate. Ned owned a small roofing business, in addition to a personal residence and other personal property. Ned was divorced and had no children. While administering the estate, Harold took possession of the residence, personal property and ran the business. Which of these actions violate his appointment?
Correct
Incorrect!
Correct Unless specifically authorized, either by the court or the will, the personal representative ordinarily has no duty or authority to carry on a business owned by the decedent. If he does so without express authority, the personal representative is personally liable for any losses and personally accountable for the profits. Here, Harold was not given specific authority to manage the business. As such, those actions violated his appointment as executor, making him personally liable for any losses and accountable for any profits.
Incorrect! Unless specifically authorized, either by the court or the will, the personal representative ordinarily has no duty or authority to carry on a business owned by the decedent. If he does so without express authority, the personal representative is personally liable for any losses and personally accountable for the profits. Here, Harold was not given specific authority to manage the business. As such, those actions violated his appointment as executor, making him personally liable for any losses and accountable for any profits.
Correct
Incorrect!
Question 3
Benoit was a 62-year-old widower when he died three months ago. He was survived by two sisters, Peggy and Dalia. They both searched his home but could not find a will. Subsequently, Peggy was appointed as the administrator of the estate. When Peggy cleared out Benoit's safe deposit box (at the time of his death she did not know he had one), she found a will. The will named Dalia as the executor of his estate. Despite this discovery, Peggy keeps her appointment
Correct
Incorrect!
Correct Subsequent to the issuance of letters of administration, the court still has the authority to revoke them if they should not have been granted in the first place. Here, a will was found that named Dalia as the executor of the estate. Since courts strive to respect the decedent's wishes, the probate court would revoke Peggy's appointment as the administrator and appoint Dalia as the executor.
Incorrect! Subsequent to the issuance of letters of administration, the court still has the authority to revoke them if they should not have been granted in the first place. Here, a will was found that named Dalia as the executor of the estate. Since courts strive to respect the decedent's wishes, the probate court would revoke Peggy's appointment as the administrator and appoint Dalia as the executor.
Question 4
Dominic was the executor of his sister's estate. His sister, Kim, owned several rental properties. During the time of administration, the contract with the management company came up for renewal. In renewing the contract, Dominic signed the contract: "Dominic Taylor, executor." Dominic is NOT personally liable on the contract.
Correct
Incorrect!
Correct Ordinarily, the personal representative is personally liable on any contract entered into on behalf of the estate unless the contract relieves him from liability. One way to avoid liability is to clearly indicate in the signature that the personal representative is not taking on personal liability. Here, Dominic did not specify that he was signing as the executor of Kim's estate and not personally. Accordingly, he would be personally liable, because adding executor after his name was purely descriptive, not limiting.
Incorrect! Ordinarily, the personal representative is personally liable on any contract entered into on behalf of the estate unless the contract relieves him from liability. One way to avoid liability is to clearly indicate in the signature that the personal representative is not taking on personal liability. Here, Dominic did not specify that he was signing as the executor of Kim's estate and not personally. Accordingly, he would be personally liable, because adding executor after his name was purely descriptive, not limiting.