Registering property in beneficiaries names

specialcat

Hi, I wonder if someone could help or provide some input to tthe following issue.

The actual circumstances are somewhat complicated but in a nutshell my Father passed away 7 years ago. He left a house but this house because it was purchased in the 60s no title deeds exist for it.

The  executors who control the estate have in my opinion dragged their heels by not selling the property and they as far as I am aware have not tried to obtain title for the property. I'm sure if I asked they would say they will obtain title when the house is going through conveyancing.

I am concerned because they are in or approaching their 80s and really things need to be resolved or there more of a mess than there is now.

I would like to get them removed as Executors but i'm not sure i would succeed and also it's expensive.

A better route I think would be to compel them to register title in the beneficarie's names (There's 3 of us) so the property would effectively make up part of our own estates should one or all of us pass away.

In my opinion that would be an easier way to make sure the house when it's sold the money would be passed to the rightful heirs.

Could this be done?

Keep_pedalling

Is anyone living there?

specialcat

Keep_pedalling said:

Is anyone living there?

No it's been empty now for over 2 years because one of the "Executors" claims they are "doing it up". A best estimate would have been 3 months to have the place readied but he has told relatives he does what he can when he can. The place is being treated as if it's his personal hobby.

[Deleted User]

Has probate been granted?
If so, what was the property valuation at the time compared to now?
Has a CGT liability been inadvertently created (selling price today vs probate valuation)
Who's paying council tax, insurance and other utility bills?
Who's paying for the property 'to be done up'?

The situation is already a mess.
Considering that the three of you now own a property, the situation is likely costing you all money.
Personally, I would employ a solicitor immediately and take charge of the situation.
Seven years is far beyond acceptable and a house being stood empty is just ludicrous....

Keep_pedalling

Time to take action then. You should write to all executors informing them that unless the property is placed on the market by 2nd Jan you will be taking legal action to have them removed as executors. Hopefully the threat of legal action will give them the inventive that is required. I am assuming that they have actually made the necessary IHT return and have obtained probate. 

specialcat

Keep_pedalling said:

Time to take action then. You should write to all executors informing them that unless the property is placed on the market by 2nd Jan you will be taking legal action to have them removed as executors. Hopefully the threat of legal action will give them the inventive that is required. I am assuming that they have actually made the necessary IHT return and have obtained probate. 

Yes that was completed 2018. I was hoping to avoid the legal route and just get the title setup on the property but either way it's going to need some sort of legal advice.

Keep_pedalling

specialcat said:

Keep_pedalling said:

Time to take action then. You should write to all executors informing them that unless the property is placed on the market by 2nd Jan you will be taking legal action to have them removed as executors. Hopefully the threat of legal action will give them the inventive that is required. I am assuming that they have actually made the necessary IHT return and have obtained probate. 

Yes that was completed 2018. I was hoping to avoid the legal route and just get the title setup on the property but either way it's going to need some sort of legal advice.

Hopefully the letter will all that will be needed but you need to be prepared to follow it through. Do all of the beneficiaries currently own their home? If they do then rather than leave the executor to handle the sale a transfer of ownership might be the better option. After 7 years there is likely to be a significant CGT liability attached to the eventual sale.

RAS

Are the executors also beneficiaries? 

Do they realise that 
a) by dint of delay they've created a large CGT liability
b) that any increase in value created as a result of doing it up just increases the CGT liability and very little if any of the cost can be off-set.

And has anyone looked at the local Council's empty homes penalty for Council Tax. Likely to be winging it's was any time soon.

specialcat

RAS said:

Are the executors also beneficiaries? 

Do they realise that 
a) by dint of delay they've created a large CGT liability
b) that any increase in value created as a result of doing it up just increases the CGT liability and very little if any of the cost can be off-set.

And has anyone looked at the local Council's empty homes penalty for Council Tax. Likely to be winging it's was any time soon.

Sometime this weekend I will be putting these questions to them. There is actually only one executor, that is my Sister in Law and she made her Brother in Law (My Brother and a beneficiary) her representative. He is the one that is making all the decisions I believe. I am never consulted.

Keep_pedalling

specialcat said:

RAS said:

Are the executors also beneficiaries? 

Do they realise that 
a) by dint of delay they've created a large CGT liability
b) that any increase in value created as a result of doing it up just increases the CGT liability and very little if any of the cost can be off-set.

And has anyone looked at the local Council's empty homes penalty for Council Tax. Likely to be winging it's was any time soon.

Sometime this weekend I will be putting these questions to them. There is actually only one executor, that is my Sister in Law and she made her Brother in Law (My Brother and a beneficiary) her representative. He is the one that is making all the decisions I believe. I am never consulted.

Sounds like she has given him POA but she is still responsible. I don’t think transferring ownership is going to help here as you will then have one owner who can put lots of spanner’s in the works regarding the sale. Just demand that the goes for sale or else.

RAS

For the sake of some family harmony, I'd be inclined to speak to or email your SIL and ask her if she understands the tax consequences of her husband's actions? And advise that you will be writing formally, but didn't want the letter to come out of nowhere. 

She may not realise how much mess she's created and she may also think that deferring to a beneficiary is a good thing. Remind her that legally she is responsible for his actions. 

Do they have empty homes insurance, as well?