Once probate obtained , do we have to sell the house?

leafymeadow

My husband and I are the executors of my Father in Laws Estate. We are in the process of moving. Our buyers are pushing us to move but our purchase is proving complicated.

Can we move into my Father in laws house? Is there a time limit on how long we can keep it before selling? Are there any tax implications? We’ve only just applied for probate. Our boys are also beneficiaries and are happy to wait for their inheritance. Rather than putting the house on the market in January we are probably looking at Easter. (He died in May 2023) Any guidance appreciated.

TBagpuss

Are your sons adults? If so then if all of the beneficiaries agree to delaying the sale then you can do so, you probably ought to pay rent to the estate for the time you occupy the house and it's possible there might be tax implications.

As executors you have a legal obligation to administer the will and to act in the best interests of the beneficiaries as a whole . It would be sensible to take advice .


If any of the beneficiaries are under age then you are on much rockier ground. 

Keep_pedalling

The only tax issue might be CGT if the delayed sale increases the the value over the annual exemption, which drops to £3000 next April. You can’t really market it until you have probate anyway which might take several months. 

Nothing really stopping you moving in, but I would still start to market it as soon as you have it, any buyers will just have to wait until your purchase is sorted.

Dave_5150

You will also lose any potential Council Tax exemption too.

lincroft1710

Dave_5150 said:

You will also lose any potential Council Tax exemption too.

The purpose of the CT exemption is so the estate is not penalised whilst the property is empty and cannot be disposed of until after probate. Where the property is occupied, CT is paid as normal.

leafymeadow

Thanks for all your help - the boys are over 18.
We appreciate we will need to pay Council Tax but do have the exemption atm.

Rodders53

Nothing to stop marketing a property before Probate is obtained.  Did it with the in-Laws back in 2015.  We got probate in good time before completion, even though the whole process was relatively short.  Simpler if 'sole beneficiaries' as agreement on price when multiple can be complicated.  Having people just moved in may make viewings of a probate sale a bit odd; and the 'don't knows' on the property form seem suspicious...

I'd not, personally, want to pay 2 sets of moving fees and the double disruption involved.  (Nor would I want to live in the late in-Laws property).  Each to their own, though. 

{Things like moving broadband and contract lengths just add to reasons to say no}

Your current chain is complete don't pander to your own home buyers over-enthusiasm.