Can one beneficiary block sale of inherited property?

Minstrelle

Hi all

I am the Executor for my late MiL's Estate. She left her property to her 5 children (1 daughter and 4 sons). Sons number 3, 4 & 5 would like to club together to buy the property at a fair market value (I'm in the process of getting valuations). Can the daughter object to selling to the family based on the fact that she doesn't get on with one of them? She does want to sell but I suspect she might kick off.

Any advice appreciated.

Comms69

Have you finalised the inheritance.


Are they now owners; or are you still looking after the estate?

Minstrelle

The Will states that the youngest has permission to live in the property until June 2019 (the Occupation Period being 18 months following her passing)

So in answer to Comms69 question, I am still looking after the estate

G_M

well then you cannot sell before June 2019.

Does the will appoint trustees to support the youngest?

If not, then you are in charge and can dp what yo want provided
a) you comply with the terms of the will and
b) do not act unfair/y towards any Beneficiary

You do not need theconsent orsignitures of the beneficiaries to sell. You can sign as Executer.

All the beneficiary could do is claim against you for any loss - eg if you failed to pass on their share of the proceeds of the sale, or sold below market value.

So make sure you have clear written evidence of what the market value is!

Tom99

Minstrelle wrote: »

Hi all

I am the Executor for my late MiL's Estate. She left her property to her 5 children (1 daughter and 4 sons). Sons number 3, 4 & 5 would like to club together to buy the property at a fair market value (I'm in the process of getting valuations). Can the daughter object to selling to the family based on the fact that she doesn't get on with one of them? She does want to sell but I suspect she might kick off.
Any advice appreciated.

Who from? Given your duty as executor it would be advisable to get a current RICS Open Market Valuation rather than rely of estate agents. What value was used for probate which presumably was the beginning of 2018. Have prices gone up or down since then?
If prices have gone up you may need to investigate whether the estate would have any CGT liability for the 40% being sold.

Minstrelle

Tom99 wrote: »

Who from? Given your duty as executor it would be advisable to get a current RICS Open Market Valuation rather than rely of estate agents. What value was used for probate which presumably was the beginning of 2018. Have prices gone up or down since then?
If prices have gone up you may need to investigate whether the estate would have any CGT liability for the 40% being sold.

I am in the process of getting 3 written open market valuations (that's happening next week). Obviously I do know how much the estate was valued, although I'm unsure whether the prices have gone up or down. Will know more at the end of next week

Minstrelle

G_M wrote: »

well then you cannot sell before June 2019.

Does the will appoint trustees to support the youngest?

If not, then you are in charge and can dp what yo want provided
a) you comply with the terms of the will and
b) do not act unfair/y towards any Beneficiary

You do not need theconsent orsignitures of the beneficiaries to sell. You can sign as Executer.

All the beneficiary could do is claim against you for any loss - eg if you failed to pass on their share of the proceeds of the sale, or sold below market value.

So make sure you have clear written evidence of what the market value is!

Not planning to sell until after the "occupation period" which will be on 6th June 2019. I'm just looking into the possible pitfalls.

The will just says "MY TRUSTEES shall hold my residuary estate and income thereof upon trust for such of them my children (then it names them) as survive me ..... etc etc" So does that mean the will does or does not appoint trustees to support the youngest? The youngest being 50 yrs old!

As there are 5 beneficiaries, I do accept I need to be fair to all 5 but if one disagrees then I don't know how to keep them all happy

Tom99

Minstrelle wrote: »

I am in the process of getting 3 written open market valuations (that's happening next week). Obviously I do know how much the estate was valued, although I'm unsure whether the prices have gone up or down. Will know more at the end of next week

From estate agents? If they differ what will you do, take an average? With possibly 3 different values you are not going to be able to keep all 5 happy It would have been better, from your point of view, to have had one RICS valuation because you can then point both sides to the one independent figure.

Minstrelle

Tom99 wrote: »

From estate agents? If they differ what will you do, take an average? With possibly 3 different values you are not going to be able to keep all 5 happy It would have been better, from your point of view, to have had one RICS valuation because you can then point both sides to the one independent figure.

Yes, I see what you mean. However, solicitor advised getting 3 fair market valuations!

G_M

Minstrelle wrote: »

Not planning to sell until after the "occupation period" which will be on 6th June 2019. I'm just looking into the possible pitfalls.

The will just says "MY TRUSTEES shall hold my residuary estate and income thereof upon trust for such of them my children (then it names them) as survive me ..... etc etc" So does that mean the will does or does not appoint trustees to support the youngest? The youngest being 50 yrs old!

As there are 5 beneficiaries, I do accept I need to be fair to all 5 but if one disagrees then I don't know how to keep them all happy

Your issue is one of family relationship management, not law.


The will (apparantly) makes no mention of the property (very sensibly!), just 'my residuary estate'.


So you can sell the property, add the cash to whatever other assets are in the Estate, and then distribute it equally.


Or you could transfer the property to 3,4,5 in return fo them paying into the Estate 2/5ths of the market value of the property.


Of course, in distributing the Estate, that 2/5ths would go straight to 1 & 2 (not be divided equally beween all 5), an any other assets would be distributed equally.


So your issues are
1) keeping everyone happy. Not knowing your family, I can't help here except to advise you take up baking.


2) being meticulous in your book-keeping of the Estate, its tax, its income, its assets, its liabilities and expenses etc


3) ensuring a clear written market value is established (you could pay an RICS surveyor for this at the time of the sale/transfer in June)

getmore4less

Allowing someone to live in the property creates an interest in possession trust for the property.

Default trustees executors.