Buy house in probate within family

[Minnow2]

My grandmother died 20 years ago without a will leaving a house and farm. The farm has been leased and the house unoccupied since then. The estate is in probate and the 4 children have done nothing towards finalising the estate.

I am considering purchasing the house as I have an attachment to it. Would the family need to sell it at market value or could a price be agreed within the family? Are there any potential issues that I should be aware of?

 

[noproblem]

You would need to have a sit down with them, it's the only way you'll find out how the land lies. No pun intended Minnow.

 

[Minnow2]

You would need to have a sit down with them, it's the only way you'll find out how the land lies. No pun intended Minnow.

I mean from a legal point of view, would the house need to be sold at fair market value or by auction etc?

 

[jpd]

It can be sold at whatever price the sellers and buyer agree on but any taxes (CGT, CAT, Stamp Duty) will be based on the market price

 

[ClubMan]

The estate is in probate and the 4 children have done nothing towards finalising the estate.

What exactly do you mean by this?
Probate was, ultimately, never taken out?
If you want to buy the house then that probably needs to be dealt with first - by the children (of your grandmother I presume?).

 

[Brendan Burgess]

The estate is in probate and the 4 children have done nothing towards finalising the estate.

They really need to sort this out.

Where does the rent for the farm go? Into a probate account of some sort?

They do not need to sell the assets to a third party. They can just take out probate and transfer the lands to themselves.

Brendan

 

[Minnow2]

What exactly do you mean by this?
Probate was, ultimately, never taken out?
If you want to buy the house then that probably needs to be dealt with first - by the children (of your grandmother I presume?).

Yes, probate never taken out, family issues

 

[Minnow2]

They really need to sort this out.

Where does the rent for the farm go? Into a probate account of some sort?

They do not need to sell the assets to a third party. They can just take out probate and transfer the lands to themselves.

Brendan

I believe the rent goes into the account of the estate, although it's only a nominal sum.

Does anyone know what happens if one of the children dies without their parents' estate bring finalised? How can their estate be sorted out of they are still due an inheritance.

 

[ClubMan]

I believe the rent goes into the account of the estate, although it's only a nominal sum.

Does anyone know what happens if one of the children dies without their parents' estate bring finalised? How can their estate be sorted out of they are still due an inheritance.

As far as I know the mother's probate would still need to be dealt with first.

That's what happened in recent years when my mother died and before her probate could be done (her will leaving everything split equal ways between the children) my father's had to be done first. He predeceased her by 20 years and his will left everything to her and the house was still in his sole name - so that all had to be sorted first.

In your case, as already mentioned by others, they really should get the probate done on the mother's estate.

 

[Pinoy adventure]

It can be sold at whatever price the sellers and buyer agree on but any taxes (CGT, CAT, Stamp Duty) will be based on the market price

How can this actually work ?
Would the op be taxed as a Cat C threshold in this case ?
Or would revenue work of the valuation price ?

 

[jpd]

If it is sold at a price below the market price, the revenue will consider the difference as a gift from the other owners

 

[T McGibney]

If it is sold at a price below the market price, the revenue will consider the difference as a gift from the other owners

Is this correct??? If ownership transfers directly from the estate of the deceased to the purchaser, then the undervalue sum is surely an inheritance from the deceased and taxed accordingly?

 

[jpd]

The estate will pass the property on to the 4 children if my reading of the original post is correct - no will, etc unless of course the other three disclaim their inheritence

 

[ClubMan]

The estate will pass the property on to the 4 children if my reading of the original post is correct - no will, etc unless of course the other three disclaim their inheritence

I don't think that intestacy obviates the need for probate (other than where the beneficiaries are already joint owners with the deceased of all assets) if that's what you're implying?

 

[jpd]

Sorry, I wasn't implying that - yes, the estate needs to go through probate of course. Only then can the ownership of the property be passed on or sold.

 

[Portia]

Is this correct??? If ownership transfers directly from the estate of the deceased to the purchaser, then the undervalue sum is surely an inheritance from the deceased and taxed accordingly?

Nope - the undervalue is a gift from the other beneficiaries, who by agreeing to sell it to you for less than market price have foregone some of their inheritance and therefore given you a gift. Important to get legal advice - you could end up with a nasty tax bill.

 

[T McGibney]

Nope - the undervalue is a gift from the other beneficiaries, who by agreeing to sell it to you for less than market price have foregone some of their inheritance and therefore given you a gift. Important to get legal advice - you could end up with a nasty tax bill.

In this case you are probably correct given that it's substantially longer than 2 years since the date of death.