Using estate funds to sell a property - conflicting advice

Savvy_Sue

I think (from the OP's original thread) is that part of the issue is that the property has not been assented, and significant costs have been incurred to improve and prepare the property for sale. I do not know if the residuary beneficiaries have received anything yet, but it seems that the intention of the executor(s) is to sell the property, and hand on the sale price to A to E, LESS THE SPECIFIC COSTS OF THE SALE (estate agents, conveyancing etc). This leaves the residuary beneficiaries having paid for the improvements, which may or may not increase the sale price, but even if they DO result in an improved price this is of no benefit to the RBs. 

IANAL but this doesn't seem right to me. 

I am guessing that these are lay executors - is there generally a good relationship between all parties, or are things getting tense?

tigertrio

"So I then assume that the property is a specific gift (and not the residue).  The residue is what is left after funeral and other testamentary expenses are paid and after the specific gifts have been made"

Yes the property is a specific gift. The residue is what is left.

The property has been sold now. Which is why the will is being disbursed, it has taken over two years to get to this point.

I'm confused though as I thought the Executer Of Will Act 1915 allowed them to sell the property and allowed them to use the estate to use estate cash to sell the property (estate agent fees).

madbadrob

tigertrio said:

The issue revolves around who pays the costs to sell the property, Persons A-E who are inheriting the property? The will states no mention of selling it.

Or the other set of people, Persons X, Y and Z who are to inherit residual funds from the sale of the car and whatever was in the bank accounts, after funeral and other testamentary expenses have been paid.

Correct me if i am wrong but why sell the property?  The will makes no mention of it so therefore would it not be easier to transfer the deeds to tenants in Common naming the 5 people and let them get on with it?

I do agree with your earlier points though that as this legacy is left in a way that doesnt provide for the sale that the costs should come from the house sale.  As someone else mentioned when I have sold houses both in probate cases and my own the costs associated with conveyance and legal fees have been taken prior to the monies being returned to me so I see the point being moot unless of course the executors are intending to do the whole process themselves

Rob

Keep_pedalling

madbadrob said:

tigertrio said:

The issue revolves around who pays the costs to sell the property, Persons A-E who are inheriting the property? The will states no mention of selling it.

Or the other set of people, Persons X, Y and Z who are to inherit residual funds from the sale of the car and whatever was in the bank accounts, after funeral and other testamentary expenses have been paid.

Correct me if i am wrong but why sell the property?  The will makes no mention of it so therefore would it not be easier to transfer the deeds to tenants in Common naming the 5 people and let them get on with it?

I do agree with your earlier points though that as this legacy is left in a way that doesnt provide for the sale that the costs should come from the house sale.  As someone else mentioned when I have sold houses both in probate cases and my own the costs associated with conveyance and legal fees have been taken prior to the monies being returned to me so I see the point being moot unless of course the executors are intending to do the whole process themselves

Rob

There a several reasons why it would be a bad idea for an executor to simply transfer a property to the beneficiaries. It could cost them their first time buyer status, they might not want to be financially linked with another beneficiary, they might be minors.

An executor would usually ask the beneficiaries whether they want to to have the property sold or transferred and make a decision based on the response. In that situation I would sell and distribute the cash unless all the beneficiaries wanted to maintain ownership. 

msb1234

When I sold my DMs house, all the sale fees were paid by the conveyancer solicitor - estate agent fees, legal fees etc - then the net proceeds distributed to each beneficiary under the terms of the will. I provided the details to the conveyancer including the beneficiary bank details. That way, the proceeds never went into my bank account apart from my own share. 
The conveyancer would not pass on all the proceeds without first paying out the fees.