When the solicitor is the executor of a persons will, how do they decide how to sell the house to?

MovingForwards

Only times I've known beneficiaries to be contacted about offers were when they were charities and the entire estate was going to a charity/ charities.

ljm_88

MovingForwards said:

Only times I've known beneficiaries to be contacted about offers were when they were charities and the entire estate was going to a charity/ charities.

Thank you, this is useful to know. 

Thrugelmir

ljm_88 said:

@davidmcn I didn't realise they sometimes get professional evaluations for probates.  In this circumstance the house has been put on very low at the request of one of the beneficiaries (according to the estate agent anyway).  Offers have already gone 100k over that amount.  What the solicitors will make of that when the offers roll in, I don't know!!

The value for probate purposes maybe very different to the price someone is prepared to pay. When I sold my late mothers house it had huge redevelopement potential. This wasn't factored in the probate value, i.e. the value on the day she died. Ultimately the property sold for a considerably higher sum as 3 interested parties bid the price up. The estate then had a CGT liability to settle. 

ljm_88

Thrugelmir said:

ljm_88 said:

@davidmcn I didn't realise they sometimes get professional evaluations for probates.  In this circumstance the house has been put on very low at the request of one of the beneficiaries (according to the estate agent anyway).  Offers have already gone 100k over that amount.  What the solicitors will make of that when the offers roll in, I don't know!!

The value for probate purposes maybe very different to the price someone is prepared to pay. When I sold my late mothers house it had huge redevelopement potential. This wasn't factored in the probate value, i.e. the value on the day she died. Ultimately the property sold for a considerably higher sum as 3 interested parties bid the price up. The estate then had a CGT liability to settle. 

Thanks Thrugelmir.  This is something I hadn't even considered.  Can this delay the selling process or does the burden lie with the beneficiary that has to declare the gain?

Thrugelmir

ljm_88 said:

Thrugelmir said:

ljm_88 said:

@davidmcn I didn't realise they sometimes get professional evaluations for probates.  In this circumstance the house has been put on very low at the request of one of the beneficiaries (according to the estate agent anyway).  Offers have already gone 100k over that amount.  What the solicitors will make of that when the offers roll in, I don't know!!

The value for probate purposes maybe very different to the price someone is prepared to pay. When I sold my late mothers house it had huge redevelopement potential. This wasn't factored in the probate value, i.e. the value on the day she died. Ultimately the property sold for a considerably higher sum as 3 interested parties bid the price up. The estate then had a CGT liability to settle. 

Thanks Thrugelmir.  This is something I hadn't even considered.  Can this delay the selling process or does the burden lie with the beneficiary that has to declare the gain?

I used a RICS surveyor to provide a full valuation report. A copy of the report was submitted to the HMRC when application for probate was made. The value was accepted by them in granting probate. 
While I waited for probate to be granted. The property was on the market. After the sale eventually went through and the net proceeds received. As executor I had to submit a tax return for the estate on which the CGT liability was declared. Fortunately all ran smoothly with no delays.