beneficiaries of will one wants to buy house

theoretica

You need a valuation of the house for probate.  Sell at that valuation. 

Your children inherit just under 7% of the house - so a £10000 variation in selling price will only affect them by £700 each.  If your sister wants a lower selling price to help her child, she can just gift her 40% of the difference back to her child - which would significantly reduce the pressure on the child to quibble about exact price.  Point this out and it seems to me that the main person who might be a delay is you, and that is in your control!

molerat

theoretica said:

You need a valuation of the house for probate.  Sell at that valuation. 

Your children inherit just under 7% of the house - so a £10000 variation in selling price will only affect them by £700 each.  If your sister wants a lower selling price to help her child, she can just gift her 40% of the difference back to her child - which would significantly reduce the pressure on the child to quibble about exact price.  Point this out and it seems to me that the main person who might be a delay is you, and that is in your control!

Even less than that.  The 3 children between them inherit 20% of the 50% so 10% of the total, 3.33% each so a £10K variation is £333 each.

poppystar

I think it might be getting confused because they are all effectively residual beneficiaries so are entitled to see the accounts and maybe there is concern they might challenge if they don’t see the price paid as fair. Challenging might get to be en expensive business for the estate so in that sense the solicitor might be correct in his warning. 

BikingBud

I make it that if the sibling wants to support her offspring, by passing on their share, then they need to find c52% of the agreed selling price to buy out the other beneficiaries. 

Seems relatively straightforward. 

bobster2

Need to report / pay within 60 days of sale....

https://www.gov.uk/capital-gains-tax/reporting-and-paying-capital-gains-tax

Devongardener

bobster2 said:

Need to report / pay within 60 days of sale....

https://www.gov.uk/capital-gains-tax/reporting-and-paying-capital-gains-tax

But it’s not a Capital Gains situation.

Devongardener

poppystar said:

I think it might be getting confused because they are all effectively residual beneficiaries so are entitled to see the accounts and maybe there is concern they might challenge if they don’t see the price paid as fair. Challenging might get to be en expensive business for the estate so in that sense the solicitor might be correct in his warning. 

As long as it’s made clear that the sale price is determined by an average valuation, the other beneficiaries would be be unlikely to win a legal challenge, which could cost much more than the price difference.   It is the executors job to decide on the sale price,  and if the property was sold at a much lower price then all beneficiaries will receive less.  As others have said if the parent wants their child to buy at a lower price then they should fund the difference out of their own share, it’s the only fair solution for all beneficiaries.

poppystar

Devongardener said:

poppystar said:

I think it might be getting confused because they are all effectively residual beneficiaries so are entitled to see the accounts and maybe there is concern they might challenge if they don’t see the price paid as fair. Challenging might get to be en expensive business for the estate so in that sense the solicitor might be correct in his warning. 

As long as it’s made clear that the sale price is determined by an average valuation, the other beneficiaries would be be unlikely to win a legal challenge, which could cost much more than the price difference.   It is the executors job to decide on the sale price,  and if the property was sold at a much lower price then all beneficiaries will receive less.  As others have said if the parent wants their child to buy at a lower price then they should fund the difference out of their own share, it’s the only fair solution for all beneficiaries.

Indeed. My comment was simply to say that the solicitor might have seen it as their duty to notify a client of this possibility, even if it could be an unlikely scenario, and hence the warning of possible expense given. 

Marcon

Marcon said:

qwert10 said:

Hi no my sister and I are executors. Solicitor said if there are 5 beneficiaries each needs to agree? isn't that true? We are 2 of them and our children the others.

Are you sure that's what they said? If so, it suggests the will was quite specific about beneficiaries inheriting a share of the house, rather than a share of the proceeds of sale - and yes, that is going to make life more difficult and expensive.

But did the will leave a share of the house or the proceeds? Until that's answered, there's not much point speculating further on what needs to be done.

qwert10

Hi yes sorry will find out today Marcon, getting together to check will exactly. thanks so much