Executor named in title deeds?

Garnachko

Hello I am after some clarification on rights of executor in disposing estate amongst beneficiaries. Executor of my late father’s will has transferred title deed of properties owned by late father into his own name - he is also one of the beneficiaries, and claims this is an interim transfer whilst we deal how the estate is to be divided amongst beneficiaries - I am confused/worried as I thought title of deeds remained in name of deceased until all beneficiaries agree disposal -and I have not agreed for property to be transferred either to executor or another beneficiary. Advice much appreciated, my late fathers will stated properties to be divided equally amongst all children, thank you 

Keep_pedalling

I think you are right to be concerned, there is no need to make such an interim arrangement, it is certainly not normal and they have no right to put the properties in their sole name. Assuming this is a sibling I think you and any other siblings need to have a meeting with the executor ASAP to hammer out what is going on. It may just be he/she does not really know what they are doing.

The big issue may be in getting everyone to agree on whether to sell on not.
 

Garnachko

Thanks that’s helpful albeit concerning; what is worrying me is how they have managed to do transfer into their name without approval from me and other siblings as  it is clearly stated in will that we all have equal shares in property; we agreed to sell but I’m concerned the shares will not be distributed by executor now property is in their name.

Sea_Shell

I'd be concerned too. ☹️

Do they live in the property?   If not, does anyone?   Another beneficiary?

Garnachko

No the property is empty; the executor took responsibility for sorting the tax due with inland revenue  and accounts of my late father and is saying that is why he is named on title deeds. It maybe nothing but the fact I only found out about the change in title deeds accidentally does worry me , we are speaking again this week 

RAS

Mean-time, both you and the other beneficiary should sign up for a Property Alert with the Land Registry. The executor won't know and unfortunately, I don't think it gives a lot of notice.

It is may also be triggered if some-one re-mortgages. 

There is a Land Registry rep on here, mainly around the housing forums.

Flugelhorn

@Land_Registry may be able to help, hopefully they will see this tagged post -  it certainly is an odd course of action 

doodling

Hi,

The executor owns the house (albeit in trust for the beneficiaries) so in principle there is nothing wrong with him being named on the deeds.

It is however unusual (usually it is left in the name of the deceased until disposal is sorted) and for that reason I think you are right to be suspicious.

I woukd be asking the executor to explain why he felt the need to do something unusual.  It may be a lack of understanding as to how things are usually done, or it might be something more sinister.

Brie

Won't this make the executor liable for any CGT when the property does get sold?

RAS

There's also the little issue that transferring the property will have incurred unnecessary fees, which will have to be duplicated when the house is sold.

And I've no idea what the SLDT situation might be? 

Edited, not sure when the property was transferred but some mortgage providers don't like properties that are sold again within 6 months, which could delay things.

And some potential buyers are freaked out if a property has changed hands very recently; they assume there is a problem with it.

So either the executor is out of their depth, or they are up to something equally silly re allocating costs. The buyer's solicitor might conclude they are a chump.

Luba13, I'd suggest you ask the executor exactly what process they intend using to sell the house and why it's not yet on the market?

Just make sure they've not been advised to look at the "Modern Method of Auction".

Land_Registry

Whilst it is unusual it’s not ‘wrong’ from a registration perspective. When the sole registered owner dies probate is required and the personal rep(s) then deal with the property as part of the estate. 

Often, if the property is to be sold/transferred, a purchaser/transferee relies on the existing register plus probate to confirm the registered owner, that he/she is deceased and who, the personal rep(s) are so that the seller/transferor is correct. 

Some personal rep(s) may choose to update the register by registering themselves in their capacity as personal rep(s). It’s rarer to transfer it to themselves though unless they are the beneficiary as well or holding it in trust until a beneficiary comes of age for example. 

The key points to make are though that we aren’t privy to the ‘why’ and so long as we have the probate and transfer then it can be registered. The why can only be answered by the personal re. And if something happens next re the property that wasn’t in accordance with the will for example then a legal, not registration, challenge may result.