Is this mis-use of estate funds?

Yorkshireman99

securityguy wrote: »

Can you cite anything which says that a part share in a property is a valid form of payment from the residue of an estate? I can't find anything which says that it is. If it were, it would render moot all those discussions about the payment of costs of sale from the estate: just pass it to the residual beneficiaries to deal with.

For clarity, I am saying that the following would be easily challenged: the payment of a share of the residue of an estate in the form of a share in a property (which was not previously held in shares: obviously, it will be different if the assets of the estate include a share). I don't believe the powers of an executor extend to dividing the beneficial ownership of an asset and then using those shares to fulfil the final distribution of an estate. The reason there isn't an explicit law to say "you're entitled to cash" is because it's implicit in the requirement to obtain fair value and distribute it. Do you have an example of someone passing newly-created shares in a property to unwilling recipients and getting away with it?

A general principle of English law is that unless something is prohibited, by common law or statute, then it is allowed. Hence it is my belief, and I am happy to be proved wrong, that unless there is some specific prohibition then I am correct or that the will specifies the estate is to be liquidated before distribution. If the latter case applies then it may put the executors in a spot. Normally executors are not expected to wheel and deal with estate assets as has been suggested in this case. All this talk of liabilities attached to the property is irrelevant because those "liabilities" are not divisible from the property.up until the estate is distributed. The estate is responsible for any costs associated with property until that point. For example the estate may have to pay rates and the property should certainly be insured. Repairs my be needed but in many cases will not. Looking back I can't help feeling that the solicitor handling probate is being inept but of course we don't know all the details as the OP has not told us and probably does not know.

securityguy

"Normally executors are not expected to wheel and deal with estate assets as has been suggested in this case."

Now on that we are absolutely agreed.