Made an offer on a house that may be sold under probate, tips?

shandz_2

My Great Aunt has passed away and my mum is the executor of the will. My Great Aunt left the house profits to three charities and it is therefore being sold so the proceeds can go to each of the charities. My mum and I have had the house valued and would like to purchase it, only question is, are we jumping in to a fire here as she is executor - we don't want to sell it straight away but if we do a few years down the line will the charities be on our back for any profit we might make?

tyllwyd

I think you need to get advice from a solicitor - if the house is sold and the profits go to the charities, I don't see how they could then chase you for more money at a later stage. BUT if your mum is executor, it needs to be absolutely clear to the beneficiaries, HMRC etc that the house is being sold for its true value - if she tries to buy it on the cheap, that's when things could get messy.

DVardysShadow

tyllwyd wrote: »

I think you need to get advice from a solicitor - if the house is sold and the profits go to the charities, I don't see how they could then chase you for more money at a later stage. BUT if your mum is executor, it needs to be absolutely clear to the beneficiaries, HMRC etc that the house is being sold for its true value - if she tries to buy it on the cheap, that's when things could get messy.

I would second this. Additionally, I would be thinking of an exchange of correspondence with the charities via the Solicitor to notify the deal before it happens and give them the chance to object.

Richard_Webster

As a buyer you aren't at all concerned with what happens to the money once you have paid it over - your solicitor simply needs to make sure that the seller has been legally appointed as executor or administrator of the deceased's person's estate.

This can take some time, particularly if Inheritance Tax is payable as fairly detailed accounts of the deceased's assets have to be produced before the IHT is paid and probate/grant of administration issued.

tyllwyd

Richard_Webster wrote: »

As a buyer you aren't at all concerned with what happens to the money once you have paid it over ....

True - but if mum is an executor of the will and also a joint purchaser of the property, doesn't that put a different perspective on it?

Edited to say - I think you are replying to the OP but a new poster is in quite a different situation