Beneficiary wanting to buy out other beneficiaries from inherited property

getmore4less

securityguy wrote: »

Christ. How stupid and/or badly advised do you have to be to leave twelfth shares of anything? It's a move virtually guaranteed to start a fight. If I were an executor with that dumped on me I would renounce if I possibly could: let people who care fight it out amongst themselves. All that grief for the price of a holiday? Nah.

Probably not that unusual with a I give all I own to my grandchildren.

securityguy

No, that is 12th shares of the cash equivalent. Surely it must be incredibly rare to leave a 12th share in a house, as opposed to the value of the house? The OP refers to buying out beneficiaries, not buying the property from the estate as would be the case if it were just 12th shares of the final sum.

getmore4less

post 5......

The will stated all beneficiaries have an equal portion of the finalised estate. In my knowledge that meant selling all possessions and the house, pooling all the money in a executors account, paying all outstanding debts, then divining equally the remaining funds to each of the 12.

people often get the technical terminology a bit wrong

glyndwr1999

Hi getmore4less,

this is the actual wording form the will, which also names me and my address as the sole executor.

after payment of all of my just debts funeral and testamentary expenses, I give devise and bequeath all the rest residue and remainder of my estate both real and personal whatsoever and wheresoever to all 12 named in the will, each beneficiary is individually named.

How would you look at this and its meaning?

Thanks.

getmore4less

that is the standard legal term to make sure it captures all of the assets.


The key bit will be somewhere else, often the trustees statement which may or may not have something like...

to my trustees upon trust to sell call in and convert the same into
money but with full power to postpone the sale calling in and conversion thereof for so long as they in their absolute discretion shall think fit

Where specific terms are not in a will statutory terms/powers exist.

securityguy

glyndwr1999 wrote: »

Hi getmore4less,

this is the actual wording form the will, which also names me and my address as the sole executor.

after payment of all of my just debts funeral and testamentary expenses, I give devise and bequeath all the rest residue and remainder of my estate both real and personal whatsoever and wheresoever to all 12 named in the will, each beneficiary is individually named.

How would you look at this and its meaning?

Thanks.

Then the other beneficiaries don't get a say. The executor sells the house at market rate and distributes the cash. If the purchaser happens to be one of the beneficiaries, so be it. There's no question of "buying out" the beneficiaries (hence my confusion, for which I apologise) as they never owned it: the estate owns it, and can sell it to anyone the executors want (although if they buy it themselves they should be careful about valuation).

"Buying out" and deeds of variation and so on arise if a property passes to beneficiaries as shares in the property and some want money instead; that might be done as a separate commercial transaction, but if the estate is liquid a DoV might be used to give those that want money more money and rearrange the property shares.

But in your case: sell it to whoever, and divide the money up. Crazy schemes to keep the house in the estate, accruing cost, until some unspecified point are unlawful, as the beneficiaries can quite properly demand their money on reasonable timescales.

glyndwr1999

Ok thank you for all your help with this query.

Being an executor is not something I'd consider doing again to be honest, it's been a lot of hassle, even more so due to the number of beneficiaries involved. If it was straight forward then yes but this is has not been a good experience, and has definately soured relationships with family that were fine beforehand, so in that sense it's been a negative experience.

As anyone experience with auctioning property, as I see it at the moment the less stress or hassle for me personally would be send it to auction as no matter what offers I get through an ea may not be sufficient to please all of the beneficiaries at the same time.

Thank you

Yorkshireman99

glyndwr1999 wrote: »

Ok thank you for all your help with this query.

Being an executor is not something I'd consider doing again to be honest, it's been a lot of hassle, even more so due to the number of beneficiaries involved. If it was straight forward then yes but this is has not been a good experience, and has definately soured relationships with family that were fine beforehand, so in that sense it's been a negative experience.

As anyone experience with auctioning property, as I see it at the moment the less stress or hassle for me personally would be send it to auction as no matter what offers I get through an ea may not be sufficient to please all of the beneficiaries at the same time.

Thank you

You just get an EA to auction it. They deal with everything and at the end you get a cheque for the net amouint after their charges Simples! Any beneficiary can, if they wish, bid like anyone else. End of story and no hastle. The beneficiaries can moan and groan but you will have acted correctly so their complaints will have no validity. As the situation is whatever you do will not satisfy someone so just do it by the book.

unforeseen

As executor, with an offer of £44k on the table against a valuation of £47k then taking it to auction is liable to have a claim of failing to get the best price paid against the executor. If it goes for less than £44k which it probably will at auction then the beneficiary that offered the £44k has good grounds for claiming the executor has failed in their duty.

Mojisola

unforeseen wrote: »

As executor, with an offer of £44k on the table against a valuation of £47k then taking it to auction is liable to have a claim of failing to get the best price paid against the executor. If it goes for less than £44k which it probably will at auction then the beneficiary that offered the £44k has good grounds for claiming the executor has failed in their duty.

And there will be auction costs to pay as well which will reduce the legacy.