Scotland: 2 beneficiarys want to buy house

john110375

mattojgb said:

john110375 said:

mattojgb said:

Are the beneficiaries also executors? 

1 is who also wants to buy

I can't see that happening then. Extremely complex for executors to purchase assets of the estate. In particular, you would need all the other beneficiaries to agree and to have received independent legal advice. If is sold to the other beneficiary I suggest you make sure that the others have received independent legal advice and appropriate to disclaimers to protect you as executor.

So the executor would have to resign? If they want to buy it but only if the other two agree?

buddy9

john110375 said:

So the executor would have to resign? If they want to buy it but only if the other two agree?

Resign?

If you are the sole executor nominate and the recipient of the Grant of Confirmation, you are the only person who can authorise the sale of the property.

mattojgb

It's generally not possible to avoid the self-dealing rules by resigning - unless done immediately after the person's death. If the executor were to buy it, an aggrieved beneficiary could challenge the sale at any point for years after.

john110375

At the moment the executor is being threatened to be removed by the court due to inaction, if they were removed by the court then could they then buy? 
There is another executor, they are mother and son, thanks

mattojgb

As soon as an executor becomes involved in the administration of the estate then the self dealing rule starts to apply. I don't imagine it would matter how they ceased to be executor - the rule still applies after they cease.

john110375

So is there any way for the executor to buy? It's their family house of over 100 years and they want to keep it in the family. They are happy to pay the other beneficiarys more than the valued price, thanks for all your help so far.

Linton

Google will find you lots of info on self dealing.  See here for example.  To ensure you are safe from any comeback it may be prudent to use a solicitor.

user1977

Linton said:

Google will find you lots of info on self dealing.  See here for example.

Though note that's English. The principles are likely to be similar in Scotland but I'm not sure about any relevant caselaw. I'd have thought it would be safe enough if the other beneficiaries explicitly consent to it, but the OP obviously knows more about the family dynamics (which may be more important than the pure legal position!).

Keep_pedalling

john110375 said:

So is there any way for the executor to buy? It's their family house of over 100 years and they want to keep it in the family. They are happy to pay the other beneficiarys more than the valued price, thanks for all your help so far.

Yes, but only if all the other beneficiaries are in agreement and happy with the price being paid. Unfortunately in this case we have 2 who want to do the same thing so it ain’t going to happen. Hanging on to a family home for sentimental reasons rarely makes good financial sense in situations like this can cause massive falling out within the family.