Intestate - does family home HAVE to be sold?

DreamweaverB

When someone dies intestate who decides if/when the family home is sold? The executor/administrator or the main beneficiary?

Dad died intestate so estate (everything was in his sole name) will be split between wife and three children. There's plenty of cash/shares/policies/other assets that can be sold to pay IHT, funeral bill, children's inheritance and the wife could stay in the family home which is worth somewhat less than her share of the estate.

There's an argument brewing between the family over whether family home should be sold or not - is there a priority order of what is sold to distribute the estate (i.e. the decision is taken away from the family and so nothing to argue about) or is it down to the discretion of the executor?

TBagpuss

If Wife wants to remain in the house and the value of the property is less than her entitlement, then there's no reason it has to be sold. Presumably she is also the administrator?

The only issue would be if there is a dispute over the value of the property, as the only definitive way to determine its value is to sell and see how much you can get for it.

Who is pushing for the sale, and why? Who is the administrator?

Yorkshireman99

In the case of intestacy the assets will usually be all sold and the net amounts distributed according to the law. Someone will have to apply for letters of administration to deal with this. None of the beneficiaries have any say in the matter nor does the-administrator. If ALL the beneficiaries agree then the estate can be varied using a Degree of Variation (DOV). Google intestacy Gov U.K. to see who I inherits what.

DreamweaverB

TBagpuss wrote: »

Who is pushing for the sale, and why? Who is the administrator?

Yorkshireman99 wrote: »

In the case of intestacy the assets will usually be all sold and the net amounts distributed according to the law.

Thanks, there's no argument over the valuation but the wife wants to sell and move elsewhere while two of the children want the family home to stay "in the family." Administrator not yet appointed.

Hence, does the law stipulate how the estate is distributed? Does everything have to be turned into cash and then shared as per intestate rules or does Administrator have discretion over what to sell or does Administrator have to follow a particular set of rules for converting assets into cash for distribution and bill payment?

Yorkshireman99

DreamweaverB wrote: »

Thanks, there's no argument over the valuation but the wife wants to sell and move elsewhere while two of the children want the family home to stay "in the family." Administrator not yet appointed.

Hence, does the law stipulate how the estate is distributed? Does everything have to be turned into cash and then shared as per intestate rules or does Administrator have discretion over what to sell or does Administrator have to follow a particular set of rules for converting assets into cash for distribution and bill payment?

The administrator has to strictly follow the rules. The IHT has to paid first. Depending if DOV can be agreed. There are tax implications as well. Whoever applies for LOA MUST get paid for professional advice on what to do. A paid for valuation of the house by a RICS is essential

Robin9

The two children who want the house to be kept in the family need to look beyond sentimentality and memories and think about practicality - is the house to be rented out ? is one of the children going to live there, pay rent ?

DreamweaverB

Yorkshireman99 wrote: »

The administrator has to strictly follow the files. The IHT has to paid first.

"follow the files"? Are there a specific set of rules laid down somewhere?

Does anyone know how the Administrator decides which assets to sell to pay for, for example, the IHT?

Robin9 wrote: »

is one of the children going to live there, pay rent ?

Yes, one child wants to live there and pay rent. The wife just wants to sell.

AnotherJoe

DreamweaverB wrote: »

Yes, one child wants to live there and pay rent. The wife just wants to sell.

The wife and other child can sell their portion to the child if the child can afford it.

Or, if, say the estate is worth £300k, going to 3 people equally, and the house is worth £100k and the child wants that house as his/her portion then it would seem pointless for the wife not to allow that since if the house was sold on the open market, the child could still buy it.

If the child wishes to live in it and pay rent to someone (other children, wife?) they certainly cannot enforce that nor can (obviously?) the child enforce that the house is not sold.

Yorkshireman99

DreamweaverB wrote: »

"follow the files"? Are there a specific set of rules laid down somewhere?

Does anyone know how the Administrator decides which assets to sell to pay for, for example, the IHT?



Yes, one child wants to live there and pay rent. The wife just wants to sell.

Typo now corrected. Sorry. The intestacy rules are crystal clear. Apart from a DOV agreed by ALL beneficiaries the executor has no discretion. Again I emphasise the administrator must get professional advice before proceeding. The administrator must make their decision re paying the IHT without favouring any party. One person can buy the property and rent it but the have to pay the FULL market price. Again there are tax implications henpecked the need for professional advice.

Keep_pedalling

What is the value of the estate, and how much is the house worth?

Brynsam

Are you sure your mum hasn't automatically inherited the whole house? If she and your dad were joint tenants (the most common way for married couples to own property), she will inherit his share on his death, so it will then be entirely up to her what happens to the house.