Executor of will navigating family politics
Discussion
My sister and I are executors of our step-dad's will. It's fairly simple, he owned a rental property which he has left an equal share of to his brother, his sister and my auntie, the rest of his estate is left in equal shares to myself and my sister.
My question is around the rental property, which currently has a tenant. My view is that the job of the executor is to transfer the ownership of the house to the 3 people named in the will, leaving it to the beneficiaries to decide between them what they then do with it.
Unfortunately, my aunt has decided that, for (somewhat legitimate) reasons, I won't bore you with, she doesn't want to deal with or speak to my step-dad's brother or sister. Because of this, she wants my sister and me, as executors, to sell the house before distributing the proceeds to the 3 beneficeries.
Now, I don't really need the stress of selling the house along with dealing with everything else, but equally, I don't need the stress of falling out with any family members. I have no experience of this situation - is it reasonable for beneficiaries of a will to ask the executors to sell a property before they receive the proceeds? It feels to me that this goes above and beyond the expected duties of an executor.
My question is around the rental property, which currently has a tenant. My view is that the job of the executor is to transfer the ownership of the house to the 3 people named in the will, leaving it to the beneficiaries to decide between them what they then do with it.
Unfortunately, my aunt has decided that, for (somewhat legitimate) reasons, I won't bore you with, she doesn't want to deal with or speak to my step-dad's brother or sister. Because of this, she wants my sister and me, as executors, to sell the house before distributing the proceeds to the 3 beneficeries.
Now, I don't really need the stress of selling the house along with dealing with everything else, but equally, I don't need the stress of falling out with any family members. I have no experience of this situation - is it reasonable for beneficiaries of a will to ask the executors to sell a property before they receive the proceeds? It feels to me that this goes above and beyond the expected duties of an executor.
Your role (duty) is to enact the points set out in the will (Instruct a Solicitor to transfer the title to the 3 in accordance with the will).. Anything after that is their problem, if you get involved and cock up the eviction/sell it for buttons then 1 or all of the beneficiaries would have a strong legal case to chase you for their losses.
Time to have an early grumpy conversation rather than spend the next year going through the courts for a Section 21 (if they still exist) and then putting it up for sale.
Regards
Jim
Time to have an early grumpy conversation rather than spend the next year going through the courts for a Section 21 (if they still exist) and then putting it up for sale.
Regards
Jim
It's reasonable for her to ask, but that doesn't mean she can tell the exectuors what to do.
The exectutors job is to distribute the estate per the will. Selling before distribution makes it easier as it's a single seller. If there's 3 joint owners that leaves plenty of scope for argument about whether it's being sold for the "right amount". But if they don't speak to each other, maybe it'll be best if the estate sells the property.
Bear in mind that the CGT exemptions for executors are less generous than 3X those for individuals, so if CGT is an issue that may be a consideration.
There may be no way to satisfy everyody involved!
The exectutors job is to distribute the estate per the will. Selling before distribution makes it easier as it's a single seller. If there's 3 joint owners that leaves plenty of scope for argument about whether it's being sold for the "right amount". But if they don't speak to each other, maybe it'll be best if the estate sells the property.
Bear in mind that the CGT exemptions for executors are less generous than 3X those for individuals, so if CGT is an issue that may be a consideration.
There may be no way to satisfy everyody involved!
Callerton said:
It's reasonable for her to ask, but that doesn't mean she can tell the exectuors what to do.
The exectutors job is to distribute the estate per the will. Selling before distribution makes it easier as it's a single seller. If there's 3 joint owners that leaves plenty of scope for argument about whether it's being sold for the "right amount". But if they don't speak to each other, maybe it'll be best if the estate sells the property.
Bear in mind that the CGT exemptions for executors are less generous than 3X those for individuals, so if CGT is an issue that may be a consideration.
There may be no way to satisfy everyody involved!
On the CGT, pretty sure you can do some fancy stuff via transfers at point of sale.The exectutors job is to distribute the estate per the will. Selling before distribution makes it easier as it's a single seller. If there's 3 joint owners that leaves plenty of scope for argument about whether it's being sold for the "right amount". But if they don't speak to each other, maybe it'll be best if the estate sells the property.
Bear in mind that the CGT exemptions for executors are less generous than 3X those for individuals, so if CGT is an issue that may be a consideration.
There may be no way to satisfy everyody involved!
Ie, it could be transferred to beneficiaries, who then transfer half to a spouse each, and then they all sell (so say 6x allowances for CGT), at point of sale to a new owner.
Obv some fees to set that up, but possibly still worth it depending on tax positions of each beneficiary vs the Estates position.
We did that with a lot of my Dads stuff back when the CGT free allowances were much bigger too, made it well worth the extra hassle!
I’d just see what the beneficiaries want?
If none of them are up for it then it makes sense to sell it.
Sharing stuff like this is hell. Unless the ROI is really good it’s probably more a liability for all concerned just for the fact it’s 3 separate interests for one relatively small return each.
Callerton said:
It's reasonable for her to ask, but that doesn't mean she can tell the exectuors what to do.
The exectutors job is to distribute the estate per the will.
Yup. Just because someone doesn't like the content of the will, doesn't mean they get to boss everyone else around until it suits them.The exectutors job is to distribute the estate per the will.
Quite apart from the family dispute angle, there's also the angle that you shouldn't be overly involved in doing the benefeiciaries' life admin for them. The way this is going it would be lumped onto the executor to evict the tenant, market and sell the property, deal with their tax implications, and so on. And the costs of all that would likely be seen (by one person) as coming out of the whole estate, not just the asset distributed to three beneficiaries.
As they're not going to cooperate with each other, I would get ownership transferred in the quickest cheapest approach for the estate and leave them to figure out what to do after that.
LeoSayer said:
This.
Surely it's less work for everyone (including the OP) if there is one sale transaction now rather than 5 transfers and then 5 individual sales.
Not if the tenant doesn't want to move Surely it's less work for everyone (including the OP) if there is one sale transaction now rather than 5 transfers and then 5 individual sales.
And the beneficiaries aren't on good terms.
By far the simplest thing is to transfer the title and leave them to it.
LeoSayer said:
Surely it's less work for everyone (including the OP) if there is one sale transaction now rather than 5 transfers and then 5 individual sales.
Seriously?The executor does a single transfer to the three beneficiaries and it's done. They can then argue among themselves about what to do, when to give the tenant notice, how much to sell for, which solicitor to use,how much renovation to do, etc. etc. Selling a house can be an utter ball ache, and it's absolutely not the executors job.
Either way, there's only a single "sale". No idea where 5 came from?
silentbrown said:
Seriously?
The executor does a single transfer to the three beneficiaries and it's done. They can then argue among themselves about what to do, when to give the tenant notice, how much to sell for, which solicitor to use,how much renovation to do, etc. etc. Selling a house can be an utter ball ache, and it's absolutely not the executors job.
Either way, there's only a single "sale". No idea where 5 came from?
I misread the OP - thought they were being left a share of the property as well.The executor does a single transfer to the three beneficiaries and it's done. They can then argue among themselves about what to do, when to give the tenant notice, how much to sell for, which solicitor to use,how much renovation to do, etc. etc. Selling a house can be an utter ball ache, and it's absolutely not the executors job.
Either way, there's only a single "sale". No idea where 5 came from?
You haven't stated the relative values of the rented house vs. the rest of the estate, but how about just engaging the services of a Probate Solicitor or another similar professional? They will take all of the ball-ache out of dealing with squabbling beneficiaries and give you someone to "blame" if anyone is unhappy. It MIGHT be possible to engage someone just to deal with the rented house part, leaving you to deal with the remainder of the estate however you prefer.
Imo, if transferring the title deed fulfill the instruction, do this and walk away then rather get involved with any sibling issues.
Currently, we have a sibling issue where my no. 2 brother refusing to play ball simply because he wanted full control of my Mother's assets (same for my Father's asset's too), but my other brother was appointed Executor instead. Part of the asset for distribution was a piece of land which is jointly owned by 4 different families i.e. we own 25% as a family with each brother owning 6.25%. Prior to my Mother's passing, the 4 families agreed to develop the land and transfer the properties to the siblings. Surveyor plans was drawn and the property developer agreed to transfer 3 apartments to each family upon completion (we can rent out or sell as we please). My brother no.2 wanted full control of this deal (he basically wants a bigger cut!), and is refusing to sign off the previously agreed deal which is pissing off my other brothers, the 3 other families, and the property developer! We anticipate a delay for a year, but our solicitor has drawn up a (legit) plan to progress the building development. Basically, my brother / Executor will comply with my mother's wish by distributing 25% proceed of the land sale to brother no.2 i.e. what we/remaining brothers do with OUR land is up to us...
Currently, we have a sibling issue where my no. 2 brother refusing to play ball simply because he wanted full control of my Mother's assets (same for my Father's asset's too), but my other brother was appointed Executor instead. Part of the asset for distribution was a piece of land which is jointly owned by 4 different families i.e. we own 25% as a family with each brother owning 6.25%. Prior to my Mother's passing, the 4 families agreed to develop the land and transfer the properties to the siblings. Surveyor plans was drawn and the property developer agreed to transfer 3 apartments to each family upon completion (we can rent out or sell as we please). My brother no.2 wanted full control of this deal (he basically wants a bigger cut!), and is refusing to sign off the previously agreed deal which is pissing off my other brothers, the 3 other families, and the property developer! We anticipate a delay for a year, but our solicitor has drawn up a (legit) plan to progress the building development. Basically, my brother / Executor will comply with my mother's wish by distributing 25% proceed of the land sale to brother no.2 i.e. what we/remaining brothers do with OUR land is up to us...
OP, as others have already said, your sole responsibility as executor is to carry out the wishes of the deceased as per their will.
From sound of it, the will contained a clause that said something like "I leave my rental property to beneficiaries A, B and C" (or words to that effect). If beneficiary C would rather have the cash, then tough (especially if A and B want to keep the property to continue renting it out).
The situation could be different if A, B and C all wanted to dispose of the property immediately. But in that case, you'd need to get them all to sign something that would allow you to alter the outcome of the relevant clause in the will, in order to protect yourself and the other executor.
From sound of it, the will contained a clause that said something like "I leave my rental property to beneficiaries A, B and C" (or words to that effect). If beneficiary C would rather have the cash, then tough (especially if A and B want to keep the property to continue renting it out).
The situation could be different if A, B and C all wanted to dispose of the property immediately. But in that case, you'd need to get them all to sign something that would allow you to alter the outcome of the relevant clause in the will, in order to protect yourself and the other executor.
ashenfie said:
Unless anyone objects, sell the house with a tenant. It the simplest solution. You re the only one who has absolute power and I the long run will be the least painful for everyone.
Until a week after the money lands in the bank and you get the beneficiaries claiming that they're unhappy with the course of action YOU bullied them into.Nope.
"Congratulations guys, you've all got a third of a house. Done. See you at Christmas. For absolutely no more than 20 minutes. Cheers!"
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