Executor wants to buy the house.

IvorSmallun

Hello to all. Can somebody give me some guidance please ? I am a beneficiary of my mother's will. There are four equal beneficiaries to the estate (mainly mum's house). These are myself, my younger brother, the wife of my elder brother who sadly and suddenly died a few months ago and my step father. My younger brother and an uncle are the executors although the Uncle has stepped back with 'power reserved' allowing my younger brother to be the main executor.
This is the present situation. My younger bro (the executor) wants to buy the family home. Initially this wasn't a problem. My step father had always maintained that when the time came he would move out into his own place. For six months after my mother's death he went actively house hunting and using local estate agents to find a new home. Then suddenly he announced that he too wanted to buy the family home and just as suddenly put his own house on the market which sold within a week. This caused considerable tension and he now no longer wishes to see or speak to us (he still resides in mum's house which is solely in her name, has no mortgage on it and no common tenancy etc). We are not welcome in our own family home! This problem arose six months ago. My brother has the full support of myself and my sister in law and we trust him. A few months ago a mutual friend let us know that our step father has now bought a house a few miles away and has let it be known that after renovation he will move into it sometime next spring ... although he has refused to answer my brother's letters and does not communicate with us at all. SO (at last you say) my brother wants to know how best to proceed. Surely when our step father moves out my brother can move in ? He is an honest man and has plans to arrange for a chartered surveyor to value the property and to buy it at a fair market price and to pay out in equal shares our due amounts. We are not well off and try to avoid solicitors. He has been told that he now needs to use a different solicitor than the one who arranged probate so as to avoid a conflict of interest - him being an executor as well as a beneficiary. Is there anything else he needs to do legally to complete the purchase of our family home? ... clearly our step father has fallen out with us but has not made any 'official' protest. It is all very stressful and seems so silly. I need a clear head and clear advice. Thank you for reading this.

konark

Who was the solicitor who arranged probate, I thought your younger brother was the executor.

The legal fees for buying a house are not high, less than £1000.
Your step father is essentially 3/4 of a squatter, he only owns a quarter of the house yet he is living in all of it. To be frank if he really is moving out soon I'd let it pass. Once the house is empty it will be easy to transfer to your brother. How is he financing?, if by mortgage he will need to buy it from the estate so he'll be both seller and buyer. But he'll only be seller wearing his executives hat so he will need 2 solicitors. It's not an unusual situation when one beneficiary wishes to take over the family home.

IvorSmallun

Thank you for your response Konark. Yes my younger brother is the executor and has probate over the estate (if that's how you 'word' these things). He just didn't want to have to use more solicitors -the cost comes out of the estate apparently- ALSO, do we (the other three beneficiaries) have to sign anything 'official' to 'allow' my brother to make the purchase? Our step father just won't talk or engage with us at all and would never sign anything anyway. My younger brother is the sensitive type and hates confrontation ... I think this is making him stressed as he's lost weight and seems anxious. One other thing Welsh law and English law are the same aren't they? -

Yorkshireman99

Things you need to check is if the house insured and who is responsible for maintenance? English and Welsh law are the same in this context. Two solicitors are needed though they can be from the same firm if that makes it any easier. assuming there are several solicitor partners. These cost come out of the estate.

Marktheshark

If he has probate he is legally bound to follow the will exactly.
It can not be modified.
If it states the house is to be sold I would state it goes on the open market and anyone wanting to buy it will have to out offer any other offers.

I would also make it clear any one living in it will be paying rent at the market rate unless the will states otherwise.
I would send the executor a firm letter stating unless the will is followed you will apply for a court order to have them removed as executor.
If it states equal split, make it clear they have 30 days to get the house on the open market after probate.
Nobody is getting any cheap house.

TBagpuss

the executor has adminsister the estate in accordance with the will and ensure tht he does not discriminate between beneficiaries. It is not necessary to sell the house on the open market but it is important that, if the house is sold by the estate to your brother, that it is sold at full value so that the other 3 beneficiaries are not disadvantaged.

The estate doesn't have to sell it to your step dad but if step-dad were to offer a higher price then it would be hard to justify *not* selling to him.

Your step dad is not entitled to deny access to the property to the executor (unless of course the will provided for him to have a right to occupy the property for a period after your mum's death)

It may that you brother would be wise to take legal advice and perhaps to get a solicitors letter sent to your step dad setting out the situation and requiring him to either vacate the property or to at least pay (3/4 of) market rent while he remains there.

IvorSmallun

Thank you for these comments (not sure yet how to use the 'Thanks' facility on this forum) so a general all round thanks to you folk. The 'rent' factor hadn't occurred to me ...perhaps why I'm not a businesswoman ... can he be asked to pay rent really ? Thinking about it, why not, afterall he has sold one house (his own) and now bought another several months ago AND he's still living in mum's place ! Nice work if you can get it!

jackyann

Yes, he can be asked to pay rent, although a lot of families would not pursue it (you might think that by living there he is keeping the house nice and more attractive to a buyer)
I would definitely use another solicitor - you can keep costs down by preparing as much paperwork as you can, having everything ready when you go to appointments etc.

I would just add that grief can cause people to behave oddly; sometimes relatives (especially in a "step" family) just don't seem to be on the same page.

theoretica

IvorSmallun wrote: »

He just didn't want to have to use more solicitors -the cost comes out of the estate apparently- ALSO, do we (the other three beneficiaries) have to sign anything 'official' to 'allow' my brother to make the purchase?

Surely only the cost of selling the house will come out of the estate - the solicitor cost of buying it would be down to brother alone, as it would be if he bought any other house, or anyone else bought this one.

To answer the second part you will need to look to the wording of the will - it may well give the executors power to sell the house, in which case noone else need be involved.

For the appearance of evenhandedness it might be good if the uncle who is an executor but not buying took the lead on confirming the price your brother is paying is the best the estate could expect. You can, should you feel like it, gift him back some of your 1/4.

dancingfairy

As executor your brother has to follow the will and get the best price for the house (assuming the house is to be sold). He can't unilaterally decide to sell it to himself/ give himself preference in buying it. It would be fine if all beneficiaries agreed but clearly they don't anymore.
You need to try and contact father in law informally and find out his intentions. If this fails then you will need to get advice from a solicitor. I'd be tempted to write a letter stating 'as you aware, I'm the executor of the will of z,yz and as such I need to ensure the house is sold as per the will, I would be grateful if you could let me know within the next 28 days what your intentions are'.
Obviously you don't want to throw him out of what would have been his home with no compassion but you do need to try and move things along a bit. It would be worth seeking advice from a solicitor at this point.
Df

IvorSmallun

Thank you for your comments ...some food for thought there. He certainly isn't being 'forced' out and nor has my brother (as Executor) made any demands or threats (if anything perhaps he's been too patient under the circumstances). Bear in mind that our mother died just over a year ago, he sold his own 'family home' last July and then bought a new home in August a few miles away which he is having renovated and has told mutual acquaintances that he intends moving into his new home in March/April of next year. But to us directly he has said nothing and refuses to communicate at all! We don't intend asking for rent but it feels like he is being very selfish. Someone said above that grief can cause people to behave in strange ways ... well we are doubly bereaved (mother then our brother)and yet can still be fair minded and civil. I wondered if the fact that he has made his intentions obvious (by buying and renovating a new house nearby and telling folk he is moving next spring) is a sufficiently sound indication that he doesn't object to my brother purchasing the house? Its clear to us he will never give his agreement in writing ... he ignored the last three letters my brother sent by recorded delivery ... but he certainly signed for their receipt.