Does executor have to sell asset after probate?

[busymam]

I'm posting this on behalf of a friend.

Her mother died last February and the house (the only asset) was willed equally to her adult children. The Grant of Probate has been issued and my friend (who is the executor) is having a few problems.

There are 5 people named in the will and one of them (her brother) wants his share of the estate and is putting pressure on her. None of the other siblings are in a position to buy out his share.

As the housing market is in decline, the house has already decreased in value but he is insisting on getting his one fifth of the value of the estate as declared for probate.

What are his rights as a beneficiary? Can he force the house to be sold now even though the other beneficiaries do not want to sell?

This is very stressful for my friend and any advice would be appreciated.

Thanks.

 

[mathepac]

...
There are 5 people named in the will and one of them (her brother) wants his share of the estate and is putting pressure on her. None of the other siblings are in a position to buy out his share. ...

There's always one.

What did the will say?

Were the wishes of the testator to sell the property and divide the proceeds or was an equal share in the house left to each of the beneficaries?

Could the other four siblings join together to buy out the fifth share? If this was the family home they might like to retain it in the family.

...As the housing market is in decline, the house has already decreased in value but he is insisting on getting his one fifth of the value of the estate as declared for probate.

What are his rights as a beneficiary? Can he force the house to be sold now even though the other beneficiaries do not want to sell? ...

As one of five beneficiaries, I don't believe he can force a sale (I'm not a legal expert).

If the house were to be sold now, his share is 1/5th of what the sale realises (less the total cost of sale if no-one else wants to sell) in the current market, not the notional value of the property at the time probate was applied for.

 

[csirl]

I'm not so sure.

I would have thought that the executor is obliged to liquidate the estate unless all are in agreement. And if they decide to buy out the person who wants to sell, it would have to be at market rate.

 

[mf1]

I suppose there are two sides. The brother is entitled to his share. The others may have an emotional rather than realistic financial attachment to the property. Its a difficulty when all of the others do not want to sell. Its like an "us" against "one". The only way to avoid nuclear fall out is for everyone else to buy him out but it sounds as if the others cannot afford to. Mind you, in saying that, how hard have they tried to raise finance? And they are not all blameless either.

Another way is to put the property on the market and see what offers are made. That might be a bit sobering for all concerned and perhaps the others will see that they can buy him out.

I think the executor has to face up to all of this and bite the bullet. If she does nothing, the brother is likely to seek to compel the sale - I think he is entitled to do that.

mf

 

[busymam]

Thanks.

 

[Stifster]

to be blunt they are all going to get something for nothing so i can't understand wanting to hang onto it. Holding onto the house in the hope that it increases in value is typically Irish (and you would think people would start learning).

The brother is also entitled to force a sale whether the house was gifted specifically or it was simply part of the entire estate gifted.

 

[busymam]

An update.....nearly 5 years later!!

The estimated value of the house at the time of their mother's death was approx. €300,000. Because the executor kept putting off the sale of the house (emotional reasons, etc), the house was sold in May 2013 for €105,000.

My friend is worried that her brother may 'sue' her for the difference between the estimated value of the house at the time of death and the actual sum realised when the house sold.

Can he do that?

 

[Bronte]

I doubt very much he could sue her for the difference. There is no way of knowing if the house would actually have made 300K 5 years ago.

The mother's wishes was that the house/assets to go to all the children, to me the brother was fully entitled to his share when he originally wanted it. The other siblings who wanted to hold on to it had the choice of buying him out, the fact they couldn't get finance is neither here nor there. And it was not the brother's problem.

If it were me, unless I'd agreed to defer, I'd be hopping mad. In any case as we've seen time and again on AAM, will and families, well it's just best to sell immediately and deal with the problem. Hanging onto houses is only going to lead to grief and stress.