Buying siblings out of inherited house

Don12

I'm hopeing you wonderful people can give me some advice.
In October 2018 my mam passed away followed by my dad in November 2018 there was a will left in place with thier house being left to me and my 5 sibling. My youngest sibling and I are executors of the will and have got probate we have had 3 evaluation of the property and its averaging at £90,000. My question is of 1 executor wants to jointly buy with a beneficiary the other 4 out what is the best way to do it legally and will the be any tax or stamp duty to pay.

foxy-stoat

Which country are you from? Doesn't sound very English is all.

I am sure you have read up on the stamp duty and inheritance tax limits already?

Don12

I'm from England. Sorry I'm running on about 2 hours sleep I'm in the middle of trying to sort my mam and dads estate move house and caring for 3 children. I haven't looked into stamp duty but I'm aware theres no inheritance tax to be paid as the estate is high enough.

lisyloo

You say you are moving house, does this mean you are already a home owner? What about the other buyer? Do they already have a home?

It’s pertinent to the stamp duty question to know if the two of you are buying this as a home or to let out.

The maths is fairly straightforward. The non house buying beneficiaries each receive £15k. The two buyers need to produce £30k each for which they each receive £45k worth of equity assuming 50/50.

What do you mean by best way to do it legally?
Are there options?

xylophone

There are six beneficiaries?

Each beneficiary is entitled to £15000.

The two who are hoping to buy the property will need to come up with £60,000 to buy out their siblings.

Do they intend to borrow to finance the purchase or do they have the cash?

The executors should be able to sign the necessary forms in respect of the sale.

The buyers can instruct a conveyancing solicitor to act on their behalf in the purchase.

lisyloo

Any conflict of interest between being buyer and executor? Or is it ok if it’s all above board e.g, independent valuations that all 6 agree with.

G_M

I don't see a conflict of interest.

Obviously the joint Executers need to account for all the Estate's assets, income, running costs/outgoings, and ultimate distribution, but that is done via the Final Estate Account which is distributed to all the Beneficiaries.

Also obviously, if one or more Beneficiary felt the Estate had been mis-managed, or the Executer had taken advantage by selling him/herself the property at a reduced value (thus depriving the Benefiaries of part of their inheritance) then they could challenge the Executer(s). In court if necesary.

But that won't arise here as you have written professional Valuations and a full set of accounts.........


The Executers transfer the property into the names of the 2 Beneficiaries who want to take ownership. Then, either
* when the rest of the Estate (if any) is distributed the other 4 each get £15K more cash than the 2 who got the property, or
* if the property is all there is in the Estate, the 2 who get the property each pay the other 4 £15K from their own resources

Norman_Castle

My question is of 1 executor wants to jointly buy with a beneficiary the other 4 out what is the best way to do it legally

The executors need to get valuations to show the market value which sets the price for the property. The income from the sale becomes part of the estate which is then distributed according to the will.