Executor Duty conflicts - 2 Executors who are also main Beneficiaries

getmore4less

"Maximise" the estate is often misunderstood

Executor have no obligation to put in max effort to maximise the estate.

Take an indifference  to a property in the estate .
Exec could

Go through the process of clearing, dressing, dealing with estate agents, monitoring marketing, reviewing the offers.........
or  
Throw it in the auction, as is, no reserve.

Same with a house full of stuff 
Exec could 
Check every item and if maybe worth something photo etc and stick on ebay and make a few £ for a lot of unpaid work maximising the estate
or 
call in the clearers and pay them

With this house it would fall under the umbrella of self dealing so needs amicable solution.

Really comes down to numbers and relationships(blood and real life)
eg.  I would have a different approach to these two scenarios  
B2  became a carer for the deceased making the property their home
B2 is a freeloader and sponged of the deceased

Resident beneficiary has potential extra costs if they have to move.
Buyout has lower costs
...
Back to how far apart are we and rough value and affordability for a buyout.

An occupier has a lot of control over the sales process if they don't want to move.
B2 could drag  it out for a couple of years  with ease.

Mojisola

GTMenorcaFan said:

Buyout offered but Exec 1 thinks is too low and wants to maximise claiming it is their 'duty', hence forcing as sale as 'duty'.  How ever my understanding of Executors Duty is broad namely  to do things in the best interests of ALL the will beneficiaries.

As well as looking at the lower rate offered for a buyout, balance that against no EA fees and no on-going costs and executor time for maintaining the house until an open market sale is finalised.

Getting a slighter lower inheritance very soon can be better than holding out for more money at an uncertain date in the future.

GTMenorcaFan

Thank you all for your  inputs. In this case the resident exec/beneficiary did all the work re caring and effectively stopped all the cash funds ( and property ) going to fund a care home, that is not in doubt ( Family members would agree ) .There is sufficient cash in the estate for resident exec/beneficiary to make a buyout of the property.

naedanger

GTMenorcaFan said:

Thank you all for your  inputs. In this case the resident exec/beneficiary did all the work re caring and effectively stopped all the cash funds ( and property ) going to fund a care home, that is not in doubt ( Family members would agree ) .There is sufficient cash in the estate for resident exec/beneficiary to make a buyout of the property.

Do you mean the value of the assets excluding the property is greater than the value of the property itself, so that beneficiary 1 could be paid the value of the property from other assets, and beneficiary 2 could be paid the property itself, with any excess divided in two? If so do you know or suspect why beneficiary 1 is not willing to agree to this solution? Is it because there will be a delay or because they believe the property is being undervalued?

When executors don't agree I suspect the executor who is happier for the status quo to continue, and who is in no rush to get things done, is in the better negotiating position. But ultimately it is in all parties interests to negotiate an agreement rather than see the matter go to court.

Keep_pedalling

GTMenorcaFan said:

Thank you all for your  inputs. In this case the resident exec/beneficiary did all the work re caring and effectively stopped all the cash funds ( and property ) going to fund a care home, that is not in doubt ( Family members would agree ) .There is sufficient cash in the estate for resident exec/beneficiary to make a buyout of the property.

In which case we are not really talking about a buy out but distributing the estate so that occupant gets the house in its entirety and the other main beneficiary gets the bulk of the other assets. No purchase required, no stamp duty due.

getmore4less

Still needs the value of the property to be established and agreed by all

This dialogue is pointing to you being B2 and not a sympathetic B1

How big is the difference?