Executor wants to buy property in will

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Gabbo23

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Hi



Can someone let me know if the executor of a will can simply pay the valuation price of a property at time of death and buy it, irrespective of the current value? What if the current value if significantly higher?



Do the beneficiaries have a right to contest the transfer / sale?
 
It would really depend on the wording of the will.
If the will said ~the house should be sold but doesn’t state by who well yes they could buy it once a fair market value is met.
Perhaps get 3 separate valuations done on the property and go with the middle of all 3.
 
The Executor should proceed with caution. S/he should get the three updated valuations (as alluded to by @Pinoyadventure) and then seek the consent of the beneficiaries as to his intentions. Otherwise the executor could leave him/herself open to subsequent allegations of conflict of interest and an action to have the transaction set aside.
 
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Pinoy adventure said:
It would really depend on the wording of the will.
If the will said ~the house should be sold but doesn’t state by who well yes they could buy it once a fair market value is met.
Perhaps get 3 separate valuations done on the property and go with the middle of all 3.
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I've never seen the will though
 
If probate has been granted, then the will is public and can be accessed by anyone
 
Gabbo23 said:
valuation price of a property at time of death and buy it, irrespective of the current value? What if the current value if significantly higher?
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The Executor is bound to obtain the best price possible. The valuation as date of death is irrelevant. It’s the valuation as at the date of sale that counts. (My above post has been amended to reflect this)
 
Johnno75 said:
The Executor is bound to obtain the best price possible. The valuation as date of death is irrelevant. It’s the valuation as at the date of sale that counts. (My above post has been amended to reflect this)
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Couldn’t the Executor advise the estate agent doing the valuation of his intentions and perhaps get a lower valuation too suit his/her needs ?
 
You mean fiddle the books and thereby lowering any taxable element of the inheritance and perhaps depriving other beneficiaries of their fair share? Illegal and actionable but not unknown where properties change hands within families.
 
Just an addendum to this. The executors have decided to push on with a transfer at date of death value and not place property on the market. I've now engaged a solicitor and they're biding their time before intervening/injuncting
 
Gabbo23 said:
Just an addendum to this. The executors have decided to push on with a transfer at date of death value and not place property on the market. I've now engaged a solicitor and they're biding their time before intervening/injuncting
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Could I ask would there be much of a price difference??
Would the difference be worth the hassle of perhaps falling out with siblings over ??
 
Can you organise a current valuation as a beneficiary? So at least you would know current value versus value at date of death.
 
I'd record my objection with the executors officially before deploying the solicitor. It gives them the opportunity to do the right thing before going down a more contentious route. It may be in vain but if it works out everyone would be better off.
 
Salvadore said:
The beneficiaries have a right to ensure that the sale was for the full market value.
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And doesn't the executor have a duty to ensure that the value of assets in the estate is maximised? The executor buying at a potentially discounted value sounds, at the very least, like a conflict of interests. But I am not a lawyer.
 
ClubMan said:
And doesn't the executor have a duty to ensure that the value of assets in the estate is maximised? The executor buying at a potentially discounted value sounds, at the very least, like a conflict of interests. But I am not a lawyer.
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Would any beneficiary buying it cause a conflict of interest if bought with a discounted value ??
I think it’s fairly common where a member of the family buys the property and gets some sort of discount,which could put the ex into a bit of bother if anybody objected
 
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