Inherited property split 5 ways - what if SIL refuses to sell to me

Minstrelle

Morning all

I am the Executor of my late mother-in-law's will.

My late MIL left the property to her 5 grown up children.

My husband and I are considering buying out the other 4 (or if one of them joins us we might buy out the other 3) - funds permitting, of course.

However, my sister-in-law does not get on with my hubby at all (understatement of the year). If we were to come up with the money, is she within her rights to refuse to sell to us at the market value? She might refuse on principle (unfortunately she lives next door to my MILs property).

pmlindyloo

Minstrelle wrote: »

Morning all

I am the Executor of my late mother-in-law's will.

My late MIL left the property to her 5 grown up children.

My husband and I are considering buying out the other 4 (or if one of them joins us we might buy out the other 3) - funds permitting, of course.

However, my sister-in-law does not get on with my hubby at all (understatement of the year). If we were to come up with the money, is she within her rights to refuse to sell to us at the market value? She might refuse on principle (unfortunately she lives next door to my MILs property).

Yes, she can refuse to sell to you. You would have to go to court to get a force to sell order.

Why would you want to move next door to your SIL when she doesn't get on with your husband?

Pixie5740

What if SIL wanted to buy you out? Would you refuse?

G_M

You are the Executor of the will, so whilst you are managing the Estate it is up to you what you do with it.

Of course, as Executor you have certain legal responsibilities. You must manage the Estate sensibly, and must ensure that the Beneficiaries are not in any way deprived of their inheritance.

You must also act in accordance with the will.

What exactly does the will say? If it specifically leaves the named property to the 5 Beneficiaries, then provided there are sufficient assets elsewhere in the Estate (savings, investments etc) to pay any other debts and inheritance tax etx, then the property must be passed in accordance to the will to the named Beneficiaries.

A very poorly thought-out will I'd suggest. Leaving a named property to 5 people is fraught with problems (as you can see!)

If on the other hand the will simply leaves all assets (or the Residue after specific bequests etc) equally to the 5 siblings, then you could sell the property in your capacity as Executor and distribute the money equally.

Selling to yourself poses some risk, but is not insurmountable. In theory, any one of the other 4 Beneficiares could claim you had sold under market value thus depriving them of the full value of their inheritance. So you would have to be extremely careful not just to pay market value, but to be able to demonstrate, through written evidence, that you had sold for market value.

Provided your sister received 1/5th of the market value of the Estate (or the Residue of the Estate) no challenge would succeed.

But as I said, if the will specifically leaves her 1/5th of 21 Acacia Avenue, then you must give her 1/5th of Acacia Avenue.

Note: this is not really a property question. I suggest you post over on the probate forum here or seek legal advice.

macman

OP needs to clarify what the will actually says re the house, I find it hard to believe any professional lawyer would allow a clause written in that way.

Minstrelle

Ooh thank you for your replies.

@pmlindyloo My SIL has previously said she will move when she gets her share of the inheritance, so she might not be there. Not sure if we plan to move in anyway (long story). We may let it out

@Pixie5740 - She needs the money so she's not in a position to buy us out

@G_M - The will says "I give all my property, both movable and immovable .... to sell, call in and convert the same or such part thereof ..... I give my House ..... to my Trustees on trust. Then it names all 5 children as Trustees. The youngest gets to live there for 18 months (which will expire in July 2019).

Sorry if I have posted this into the wrong forum.

G_M

I'm not a Probate lawyer and you need proper legal advice.


'property' means 'things' rather than specificaly houses, flats etc.


But 'my house' is more specific (though what would have happened if she'd sold it between writing the will and dying.....?).


The fact that the will also specifies the youngest has the right to live there for 18 months means it cannot be sold on the open market.


It's clear (I think!) a Trust must be created to take ownership of the house, with 5 Trustees. What happens under Trust law where 1 of 5 Trustees diagrees with the other 4 I'm not sure - it may be that the majority can enforce their decisions. Again, you need a professional who specialises in Trust law.

Robin9

She has no say in the matter - the house is not hers, it belongs to the estate.

Minstrelle

Robin9 wrote: »

She has no say in the matter - the house is not hers, it belongs to the estate.

Yes that's true I suppose. As long as I do everything by the book.

I've already sorted out Probate - did it myself to save a few pennies

lisyloo

My SIL has previously said she will move when she gets her share of the inheritance, so she might not be there.

I don't like the might.


People say all sorts of things. Various members of my family have discussed emigrating or moving and usually these are often flights of fancy rather than well thought out costed plans.

Margot123

OP, you may find the Trusts Discussion Forum (not affiliated to MSE) useful: http://trustsdiscussionforum.co.uk/

The Law on Trusts can be quite complex.

Also the Probate forum on here: https://forums.moneysavingexpert.com/forumdisplay.php?f=217