Buying Out Beneficiary - Property

Keep_pedalling

Mojisola said:

Keep_pedalling said:

In which case it is solely down to the executor to dispose of the house however and executor buying property from an estate they are administering has to be aware of the self dealing rule which means that they are going to need the permission of the affected beneficiaries to do it.

Are you sure?

If the executor gets a RICS valuation and then buys the property from the estate at a slightly higher price, it would be very difficult for a beneficiary to claim that the executor had personally benefited from the process.

https://www.hughjames.com/blog/can-a-personal-representative-buy-estate-property

Mojisola

Keep_pedalling said:

https://www.hughjames.com/blog/can-a-personal-representative-buy-estate-property

"a trustee must not put themselves in a position where there is a conflict or possible conflict between their interest and duty" - there is no conflict in this situation - the executor is offering to pay more, not make a personal gain.

Add to that the "implied authority" given by the deceased when they made Chips the sole executor, rather than joint executor with the other beneficiary.

If the other beneficiary insists on the house going on the market, Chips can just offer more than the highest bid, as Savvy_Sue suggested.

Chips - what you decide to do might depend on how much money the other beneficiary would be prepared to spend trying to prevent you from buying the property.

Chips15

Savvy_Sue said:

Are the the sole executor? If you are, I think you have authority to sell the property to whoever you like. Including yourself. Offering to pay your brother well above half the market value - I don't think he'd have a leg to stand on with a formal complaint. 

Even if you do put it on the open market, you can still buy it yourself, offering above the highest offer you get. 

It's only if you are joint executors that he can stop you doing anything, as far as I can see. 

I was advised by my solicitor that I wouldn’t be able to see what other potential buyers had offered as that wouldn’t be fair to them as potential purchasers (perhaps this only applies in Scotland).  

Chips15

Mojisola said:

Keep_pedalling said:

https://www.hughjames.com/blog/can-a-personal-representative-buy-estate-property

"a trustee must not put themselves in a position where there is a conflict or possible conflict between their interest and duty" - there is no conflict in this situation - the executor is offering to pay more, not make a personal gain.

Add to that the "implied authority" given by the deceased when they made Chips the sole executor, rather than joint executor with the other beneficiary.

If the other beneficiary insists on the house going on the market, Chips can just offer more than the highest bid, as Savvy_Sue suggested.

Chips - what you decide to do might depend on how much money the other beneficiary would be prepared to spend trying to prevent you from buying the property.

I will run “no conflict” by my solicitor, although I sometimes wonder whose side they are on.  Thanks

RAS

Can you put in an offer "£500 more than the best proceedable alterative offer." I appreciate that is a bit of a hostage to fortune given the way the Scottish system works. And I suggested proceedable in case bro decides to put in a stupid offer to counter you.

Mojisola

Chips15 said:

Keep_pedalling said:

Who is the executor? 

I am (going through a solicitor as well - although I’m not sure they know what to do).

If you're not confident in the way the solicitor is  handling things, you can always pay them for the work to date and find another.

Keep_pedalling

Chips15 said:

Savvy_Sue said:

Are the the sole executor? If you are, I think you have authority to sell the property to whoever you like. Including yourself. Offering to pay your brother well above half the market value - I don't think he'd have a leg to stand on with a formal complaint. 

Even if you do put it on the open market, you can still buy it yourself, offering above the highest offer you get. 

It's only if you are joint executors that he can stop you doing anything, as far as I can see. 

I was advised by my solicitor that I wouldn’t be able to see what other potential buyers had offered as that wouldn’t be fair to them as potential purchasers (perhaps this only applies in Scotland).  

Houses in Scotland are either sold at a fixed price or, more commonly by the blind bidding system, so your solicitor is correct, as a potential buyer you cannot get a view of other buyers bids, nor can you guzzump the winning blind bid. 

Chips15

Mojisola said:

Chips15 said:

Keep_pedalling said:

Who is the executor? 

I am (going through a solicitor as well - although I’m not sure they know what to do).

If you're not confident in the way the solicitor is  handling things, you can always pay them for the work to date and find another.

Yes, that may be necessary.

xylophone

It is an awkward situation and a great shame that there is a suggestion of "dog in the manger"  about the whole business.

It appears that  your brother is not an executor  and that the will  does not give instructions any more precise than that the residue of the estate should be conveyed and made over in equal shares to you and your sibling.

It seems that your sibling has made it perfectly clear that he is not interested in holding on to the property.

Under the circumstances therefore, the executors (who no doubt had the estate valued for probate) could perfectly legitimately  transfer the property into your name at fair market value and pay your brother his due in cash?

Who are the executors?

RAS

Chips15 said:

Keep_pedalling said:

Who is the executor? 

I am (going through a solicitor as well - although I’m not sure they know what to do).

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