Inheritance question

glsmar

Hi All,
The Family property was left by a mother to 8 siblings, however one sibling was left 2/3rds of the property and the other 1/3 was left divided between all 8. This was due to the siblings being entitled to 1/3 after the father died intestate beforehand. The sibling with 2/3rds is executor of the mothers will. The usual falling out and squabbling has occurred. Only one sibling is living in the house and it is not being kept up to standard. There is a refusal to pay rent or move out. Can a rent be applied to the property and the sibling living there even if the sibling does not agree to pay it - does it require agreement by all or can an executor force this through - the basis of which is to pay the Probate bill?

I know that any sibling is entitled to look for the value of their inheritance and the property can be sold to meet that if no-one buys their share.

Can the Executor get a valuation and pay people off based on this valuation - if someone disagrees - what are the options? Also If it comes down to selling the house by whatever means - If the sibling buys the property - already owning 70% - would they have to pay stamp duty on the entire amount or just what they didn't own - i.e. 30%.

An awkward situation - but thanks for any input.

Cunsiderthis

glsmar wrote: »

Hi All,
The Family property was left by a mother to 8 siblings, however one sibling was left 2/3rds of the property and the other 1/3 was left divided between all 8. This was due to the siblings being entitled to 1/3 after the father died intestate beforehand. The sibling with 2/3rds is executor of the mothers will. The usual falling out and squabbling has occurred. Only one sibling is living in the house and it is not being kept up to standard. There is a refusal to pay rent or move out. Can a rent be applied to the property and the sibling living there even if the sibling does not agree to pay it - does it require agreement by all or can an executor force this through - the basis of which is to pay the Probate bill?

I know that any sibling is entitled to look for the value of their inheritance and the property can be sold to meet that if no-one buys their share.

Can the Executor get a valuation and pay people off based on this valuation - if someone disagrees - what are the options? Also If it comes down to selling the house by whatever means - If the sibling buys the property - already owning 70% - would they have to pay stamp duty on the entire amount or just what they didn't own - i.e. 30%.

An awkward situation - but thanks for any input.

It's much better if you can get agreement from all beneficiaries, although as you say the squabbling has started already, and the fact that someone who has only one eight of one third share (ie someone who owns just over 4% of the property) refuses to vacate the property, it seems agreement is unlikely to be reached.

The executors will have to assess the best way forward, and have to try to get agreement from the beneficiaries if possible. If thats not possible, they have to proceed anyhow and make whatever decisions they deem fit in order to carry out the wishes of the deceased.

Goesague

You will need competent legal advice. Executors can have individuals ejected from a property, at the expense of the estate, and can purchase the property themselves, but there are stringent procedures to be gone through. If there is squabbling, a meeting should be called with a solicitor in attendance and the costs of squabbling should be outlined. People should be made realise that if they squabble they may end up with nothing.

Ultimately, this smacks of the property being sold and everyone getting their share. You must remember that even if the difficult sibling is sorted out now, that won't prevent someone next year saying they need money fast and either their interest is bought off or they will seek an order for partition and sale. Like anything though, if one or more siblings can beat the market, then they will be able to acquire the property. If all agree they will accept a valuation, it can be done that way.

As regards the stamp duty, pretty sure its the 30%. They will not acquire ther 70% by deed, that will have been acquired by inheritance. You muight want to check up on deeds of family arrangement to see if the result can be achieved by waivers, as there may be a stamp duty saving on same.

glsmar

Thanks for the replies - I suppose the next question is really about selling. Can the executor take a valuation and forceibly pay people off for their shares (what do you do about those who might want to hold out for more or in spite?)

If selling and the executor buys it - again how is the transfer of title completed - by some court order or otherwise? Are the siblings required then by law to sign something or are they just bypassed?

Thanks again for the replies.

I will be going to a solicitor, but it's great to see some perspectives on this so I can discuss these issues with the solicitor.

Goesague

There are different ways of organising an executor buyout depending on how much co-operation there is with the other beneficiaries. The executor has to be very careful if buying the property themselves. They are in a position of trust relative to the other beneficiaries and an executor was held to have breached trust in buying a property at a lower than maximum valuation. The judge said she should have erred on the side of genorousity in arriving at the value. There are potential tax implications depending on the way in which the deal is structured. Proper advice is essential.