Can an estate buy a share in a house?

securityguy

I am in a tricky position of being attorney for my frail mother who is living in care, and executor for my late father. Their house now stands empty, incurring risk and cost. It is held as tenants in common, a legacy of a now-irrelevant IHT scheme, or something: it doesn't matter, it happened.

Once I have probate, my mother will own the house outright. If I try to sell the house as attorney, I have the problem that if she dies during the process — as is sadly likely — we are in a very difficult position.

I have considered the following scheme. Is it possible for my father's estate to buy my mother's half of the house, either for cash or an IOU, and then for me to sell the house as executor? This is in my mother's long-term interest: it removes a cost and a risk from her assets and converts her half of the house into cash, faster than it might other happen. It's in the long-term interest on my father's estate, as again it sells his half of the house faster. The alternative is to wait until my mother dies, and then obtain probate, which could be a long time.

Is this feasible?

Marcon

https://forums.moneysavingexpert.com/discussion/6653594/can-an-estate-buy-a-share-in-a-house

I think you're overestimating what a site like this can do. Sometimes getting proper legal advice is the only sensible and realistic course of action - and this is one such case. Relying on random strangers, none of whom has the full background, could leave you with a much more expensive outcome than a solicitor's bill.

poseidon1

You state that the current house ownership is the legacy ' of a now irrelevant IHT scheme' , what does that mean?

Was the father's half share gifted into some form of trust either before his death or a trust embedded in his will? If there was such a trust, what has happened to it?

It is important to answer that question to determine if the father's half share has been left to your mother outright ( in his will) or the subject of a continuing trust, once probate has been obtained.

You have intimated probate is currently work in progress, so whatever arrangement might make sense with regard to an eventual sale of the home, you are not yet in a position to implement, so how far into the probate process have you reached?

You also identify yourself as attorney. In what respect? As LPA for your mother, or in a more limited capacity as her delegated attorney purely for estate probate purposes, or possibly both?

Far more clarity required on exact terms of father's will, ownership of his half share and your 'attorney' role.