Four years of inaction from executor

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gingernut

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We have a situation where a house has been left to 6 beneficiaries. The executor wants the house to be sold to one beneficiary. He refused for a long time to get a valuation done, but when one was done, it was for 150% of the price he wanted to sell to the beneficiary for. The other beneficiaries are refusing to sell at the below-market price, and the executor is refusing to put it on the open market. Also, one other beneficiary put in a higher offer on the house but the executor refused that offer and didn't tell anyone else about it. He is absolutely adamant that the house should be sold to one particular beneficiary for two thirds of the market value.

The beneficiary in question has possession of the house keys, and is renting the house out, while living with the executor, who swears that the house has been empty for the last four years. There is no tenancy registered with the RTB. The beneficiary in question chose the estate's solicitor and is known to have issued instructions to the solicitor from the executor's email account (signed with the beneficiary's name).

The beneficiaries have received letters from Revenue indicating that €2 inheritance tax each has been paid on their behalf for a certain amount (just above the IT threshold) each for 2020 by the estate's solicitor, despite the house not having been sold yet, which surely can't be correct?

It's been four years, relationships are falling apart, everyone is stressed. It's an absolute mess. We've been told by our solicitor that legal action is very slow and expensive and shouldn't be considered, but there doesn't seem to be any other option at this stage, other than just forgetting about the whole thing and pretending the house doesn't exist.

Where do we go from here?
 
Based on the post I suspect that this is not the "family home".

You mention that the property is currently been rented.
How do you know?
Should this rental income devolve to the "estate"?I
Who is currently collecting it?
How are they account for it?

You say that another beneficiary has approached The executor to make an offer on the property.
Did they formally submit an offer of were they tyre kicking?

The executor is supposed to carry out the wishes as per any will.
Personal choice should not enter it.

It is possible to remove the executor but this is a legal process.
Your (?) Solicitor has indicated that this is slow and probably expensive.

Sadly it might make sense to cut your losses and take what you can.

Also
Other than the house did the estate consist of any other assets?
If so have they been realised and proceeds distributed?


Also there may be tax implications if the property is sold for less than the stated value.
 
It's a tough one.

Would the solicitor issue proceedings to have the Executor removed?

That might prompt some action.

Brendan
 
No, not the family home. We know it's rented because there have been two cars parked outside intermittently, a motorbike parked in the garden, bins outside, boots left on the doorstep and it was decorated for Christmas. All of these seem inconsistent with the claim that it's empty. I'm sure the rent should go to the estate, but it's being pocketed and not accounted for.

The other beneficiary was fully serious and had a deposit ready to go. The executor was having none of it; he wanted it sold to someone else.

Regarding the tax implications around a difference between valuation and sale price, everyone is aware of that. We're confused as to how a submission and payment have been made to Revenue when the house isn't even on the market!

Apparently having the executor removed is overly expensive and could wipe out the whole estate. It has been mentioned to everyone involved, including the executor, but it hasn't prompted action, simply arguments and more tension.

The executor has form for this with other wills which he didn't execute as he should have. He is fully sure that his opinions are the only ones that count.
 
Does the Revenue thing sound normal? It doesn't seem right to me, but I've only ever paid PAYE; maybe paying inheritance tax on an inheritance you haven't received yet, with an as-yet unknown value, is normal?
 
You say this €2 was paid by the estates solicitor. If you are confused and see nothing in your my.gov account then ask your solicitor to request details from the estate solicitor. If as you suspect the estate has falsely proved to revenue you received an inheritance then you can get your solicitor to take further steps. He may recommend to report the fraud to the gardai or the law society. No normal solicitor would be party to fraud and would do their best to ensure all paperwork is in order.

No one but you would know how much of your lifetime limit has been used up and normally you get the inheritance and it is up to you to pay the tax if any is due.

As for getting the executor to do his job, your own solicitors advice would be well worth following.
 
gingernut said:
Does the Revenue thing sound normal? It doesn't seem right to me, but I've only ever paid PAYE; maybe paying inheritance tax on an inheritance you haven't received yet, with an as-yet unknown value, is normal?
Click to expand...
If ownership of the property has been transferred to the beneficiaries of the will, then tax is assessable. Whether or not the property was sold is irrelevant.
 
I would write to the executor formally. And separately to the solicitor.. i
 
gingernut said:
He refused for a long time to get a valuation done, but when one was done, it was for 150% of the price he wanted to sell to the beneficiary for.
Click to expand...
How much are the sums involved? It could be a €80k and €120k or €800k and €1.2m.

If it’s a low-value estate it may unfortunately not be worth the hassle and legal costs especially when divided by four.
 
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