Administration is a procedure under the Insolvency Act 1986, under which a company in financial difficulties is run by an Administrator as a going concern prior to the implementation of longer-term options such as break-up and sale.

A statement of administration standards, with principles and checklist, is promoted by the organisation ‘Raising Standards of Pensions Administration’

The court supervised process by which an administrator is appointed to manage a company's affairs, business and property, usually with the aim of avoiding liquidation.

Administration (of an estate) describes the process of collecting a deceased person’s assets, paying debts, liabilities, tax and expenses, and distributing the balance to beneficiaries entitled under a will or on intestacy. It covers both testate and intestate estates.In England and Wales, Northern Ireland and Ireland, administration is usually carried out by personal representatives (executors or administrators) acting under a grant of probate or letters of administration issued by the probate court. In Scotland, the equivalent process is the administration of a deceased’s estate by executors confirmed under a grant of confirmation. Across all four jurisdictions, the term is descriptive rather than strictly defined, but its content is shaped by succession and probate legislation and case law.Key features include: identification and valuation of estate assets; settlement of funeral expenses, creditors and tax (including inheritance tax where applicable); preparation of estate accounts; and distribution to heirs in accordance with succession rules. Proper administration is central to managing personal representatives’ duties and potential liabilities, advising beneficiaries, resolving contentious probate or succession disputes, and structuring lifetime and will-based estate planning.

Restructuring & Insolvency analysis: Insolvency and Companies Court (ICC) Judge Barber held that the Lundy Granite principle does not extend to an obligation to ‘top up’ a rent deposit fund, where sums had been withdrawn from the fund to pay rent.

A beneficiary may be concerned that issues have arisen in the administration of an estate by the personal representatives which may, for example, affect the amounts that they ultimately receive. There are several mechanisms for obtaining information in this context (which may overlap with other potential actions) and these are set out in this Practice Note. Rights to Information A beneficiary has a right to request estate account information from the personal representatives at an appropriate stage in the administration. This should be done within a reasonable period, and the personal representatives are entitled to request that the beneficiary meets any copying costs. Personal representatives can meet the reasonable costs arising from their proper administration of the estate from estate funds, and it will often be prudent—especially in more complex or high-value estates—for professionals to be instructed to draw up the estate accounts and to ensure that these are ready to meet such requests from beneficiaries. In many cases, a beneficiary’s concerns will be resolved once they receive the estate accounts and can confirm that the

The major problem personal representatives (PRs) and/or beneficiaries encounter when faced with an actual or potential probate claim is how to, at the very least, maintain the estate of the deceased or move the administration forward pending the outcome of the action. There are a number of avenues through the court open to interested parties. Special grants Administration pending suit It is possible for a party involved in a probate claim concerning the validity of a Will or for obtaining, recalling or revoking any grant to make an application to the court for an order granting administration of the testator's estate to an administrator pending the determination of the action. That administrator will be under the direct control of the court and will not be permitted to make any distribution of the estate or any part of it (such as legacies) without the court's consent. Commonly, the administrator appointed will be a professional. The Supreme Court Act 1981 (SCA 1981) permits the court to order reasonable remuneration to them. The function of this

This document provides general guidance regarding some of the key issues in bringing an administration action. Your specialist Private Client practitioner will be able to provide tailored advice based on your personal circumstances. What is an administration action When the beneficiaries of an estate have concerns about whether the personal representatives (the executors or administrators) are administering the estate properly, they will wish to seek advice on what can be done rather than watching the situation deteriorate with, potentially, substantial loss to the value of the estate and their inheritance. A personal representative may be liable for laying waste to the estate, or breach of their duties. The personal representatives have a duty to collect in the deceased’s estate, settle the deceased’s liabilities and distribute the balance of the estate (after the deduction of all tax and administration expenses) in accordance with the terms of the Will or the intestacy rules. An administration action is a claim against the personal representatives for a failure to administer the estate properly. It is not a dispute over the validity of

A beneficiary who believes that a personal representative has administered an estate improperly or in breach of their duties may seek a remedy on the basis of devastavit, breach of trust and breach of fiduciary duty. This Practice Note sets out a summary of the aspects of these three types of claim and signposts further relevant resources. Devastavit Personal representatives have a duty, under Administration of Estates Act 1925, s 25 to: • collect and get in the real and personal estate of the deceased and administer it according to law • when required to do so by the court, exhibit on oath in the court a full inventory of the estate and when so required render an account of the administration of the estate to the court • when required to do so by the High Court, deliver up the grant of probate or administration to that court When obtaining a grant of probate or administration, an executor/administrator will need to swear that they will administer the estate in

During the estate administration it can occasionally transpire that during the deceased’s lifetime their attorney had misappropriated their funds. This Practice Note is a collection of Q&As that deal with issues concerning the misuse of a lasting power of attorney (LPA) that are discovered during the estate administration. The same practices and principles will generally apply to Enduring Powers of Attorney. For further guidance on challenging lifetime dispositions after death, see Practice Note: Challenging lifetime dispositions. For guidance on the misuse of LPAs during the donor’s lifetime, see Practice Note: Misuse of EPAs and LPAs and its prevention. It should be noted that although new Q&As are added to this Practice Note as they become available, individual Q&As are not currently maintained and state the law as at the date indicated in each case. Who should bring a claim against an attorney when the donor has died? The personal representatives (PRs) must collect and get in the deceased’s estate and administer it according to the law with due diligence in accordance with section

An individual may assume obligations, for example in respect of contracts, covenants, debts, duties and, generally, those obligations will subsist after the individual’s death and may be enforceable against the estate. Although the personal representatives (PRs) were not a party to the arrangements, they should understand their potential liability to avoid litigation (Hambly v Trott (1776) 1 Cowp 371). The effect of this survival of obligations depends on the form of obligations involved. Personal contracts The general rule is that the death of one of the parties to a contract does not discharge the contract. Where the contract is of a personal nature then, unless there has been a breach of the contract prior to the death, the general rule does not apply. For example, an agreement between an employer and employee is determined by the death of either and an artistic agreement is terminated by the death of the author or artist. Even though the contract may be ended, the entitlement to any unpaid and due remuneration earned

This Practice Note aims to guide practitioners to Q&As and worked examples of the relevant principles where personal representatives (PRs) either bring legal proceedings on behalf of the estate, for example to recover a debt owed to the deceased or where personal representatives defend legal proceedings brought against the estate. This may be in respect of something the deceased did or did not do in the lifetime, for example, in respect of an alleged debt the deceased owed or a claim for damages against the deceased for something they did or failed to do. This Practice Note does not cover claims by warring beneficiaries, claims against the estate by disappointed beneficiaries or claims against the personal representatives for failing to carry out their duties properly. For guidance on these areas, see the following Overviews: Probate actions (probate claims), Family provision claims and Administration actions. It should be noted that although new Q&As are added to this Practice Note as they become available, individual Q&As are not currently maintained and state the law at