Estate Administration Basics

What are the two main types of administration for deceased estates?

A Family Settlement Agreement can be used to distribute assets of a deceased estate without the need for formal court proceedings.

What are the two essential aspects of establishing a new ownership for assets upon a person's death?

The primary responsibility of a Personal Representative (PR) is to ______ the deceased's estate.

Match the following terms related to estate administration with their corresponding descriptions:

What is the primary reason for establishing 'necessity' for appointing an executor or administrator?

An executor or administrator is legally obligated to invest the deceased's assets in high-risk investments for maximum return.

What are the circumstances under which formal administration of a deceased estate may be necessary?

What is the consequence of a serious fiduciary breach?

Exculpatory clauses can completely relieve a fiduciary from any liability for a breach of trust.

What is the purpose of appointing a receiver in a fiduciary breach case?

At common law, exculpatory clauses were generally considered ______ because the law, not the settlor, imposed fiduciary duties.

Match the following terms to their corresponding definitions.

Modern legal practice allows for exculpatory clauses under certain circumstances.

Which of the following is NOT a factor that renders an exculpatory clause unenforceable in Texas?

Under Texas law, what is the legal effect of an exculpatory clause that relieves a trustee from liability for profits derived from a breach of trust?

Which type of property is governed by the law of the domicile?

Upon the death of the owner (O), heirs retain ownership even after a will is admitted to probate.

What must the executor do first to initiate the probate process?

The ______ is responsible for applying for probate of the will.

Match the terms with their respective definitions:

What is the maximum time frame to bring a suit for breach of fiduciary duty?

An adult beneficiary who is aware of a breach and does nothing has impliedly consented to that breach.

What are potential consequences for a fiduciary found guilty of breach?

A fiduciary arguing that they acted in good faith during a transaction is claiming a defense related to _____ deal.

Match the following terms with their definitions:

What does the term 'guilty' imply in the context of breach of fiduciary duty?

Self-dealing by a fiduciary automatically leads to liability under modern practice.

The statute of limitations for bringing a suit on a breach of fiduciary duty begins when the beneficiary ____ the breach.

What must an applicant prove to the court for letters of administration to be granted?

A bond is usually required for all Personal Representatives regardless of the circumstances.

What are letters testamentary?

Every Personal Representative must file an ______ of office.

What happens if the proponent prevails in establishing necessity?

The cost of a bond typically comes from the estate's debts.

What is the purpose of a bond in the context of estate administration?

What is the only remedy for breach related to fiduciary duty according to the content?

A good faith purchaser is liable to the trustee if the trustee exceeds their authority.

What should a person obtain to avoid inquiry into a trustee's powers?

A person who deals with a trustee in good faith and for fair value is not liable to the trustee or the __________ of the trust.

Match the following Texas Trustee Codes with their descriptions:

Which of the following statements is true regarding a third party's inquiry into a trustee's authority?

No cases have yet stated the need to read the trust instrument to be in good faith.

What does TTC §114.084 allow a plaintiff to do if a trustee has made a contract within their power?

The __________ is not required to inquire into the extent of the trustee's powers if dealing in good faith.

What is the role of an independent personal representative as per TEC §402.053?