Executor house "gifted" who pays

pjran

I am a joint Executor and would appreciate some help please.

Problem being there is a property involved and there has been a change of solicitor. Our first solicitor now works elsewhere and he led me to believe that the estate paid for the transfer of the house to the new owners which certainly made sense and as Executor agreed to but are now being told that the new owners have to pay as it was “gifted”.

I really don’t want to incur any legal costs myself but feel that the transfer of house costs should come from the deceased estate. I am disputing the new bill on behalf of the new owners and any legal argument would be much appreciated.

Thank you.

Pj

dzug1

It would depend on the wording of the will.

What exactly do you mean by 'gifted'?? Doesn't quite make sense in this context.

pjran

dzug1 wrote: »

It would depend on the wording of the will.

What exactly do you mean by 'gifted'?? Doesn't quite make sense in this context.

The term "gifted" is being used by the solicitor.

dzug1

Well normally

if the will says the bequest is 'free of tax' or something similar then the estate pays the tax as you surmise - ultimately the residuary beneficiaries.

if it is silent on the subject then the recipients pay their proportion

Maybe gifted is a roundabout way of saying this.

monkeyspanner

So is it a question of who pays the IHT on the property portion of the estate?

pjran

monkeyspanner wrote: »

So is it a question of who pays the IHT on the property portion of the estate?

Thank you. No IHT to pay but a fee to transfer the house to the new owners.

Willman_Rodders

The cost of vesting a specific gift in the beneficiary is payable by the beneficiary unless there is a direction to the contrary in the will.

So, the 2nd solicitor would appear to be correct - assuming the will is silent on the topic of who pays the costs.

The payment of inheritance tax is a different topic altogether.

localhero

The new owners are also liable for the cost of insuring the house since the original owner died as well.

Biggles

localhero wrote: »

The new owners are also liable for the cost of insuring the house since the original owner died as well.

Isn't it the estate that is responsible from the time of death up until the time the house is transferred?

localhero

Biggles wrote:

Isn't it the estate that is responsible from the time of death up until the time the house is transferred?

The executors will generally have a duty to insure the estate, but unless the will says otherwise then technically they should recover the costs in the OP's scenario from the beneficiary.

As Willman says, that will include not only the costs to convey the gift to the beneficary, but also the cost of insuring it as well from the time of death.

If the house is to be sold and the proceeds split, then that would be different.

pjran

Thank you all for taking the time to read and reply to my query.

I really must make a will and certainly mention that all costs relating to those who inherit to come from my estate, not everyone is in a position to pay solicitors bills just because they have been a beneficary.

xxx