Conflict of interest- inheritance

[hopeishere]

Is this a conflict of interest:

Property left to A, B and C. Equal shares. Former childhood home.

A is an executor.

A has lived rent / bills free in property for eight years. Had previously own home but sold it.

A is interested in buying B and C's share. Can they do this assuming they pay a fair and mutually agreed price?

House needs to be valued by independent agent who everyone is happy with. Not someone A's picked who will keep price low, or estate agent picked by B who will inflate price.

propertycashbuyers.com/independent-valuation-property-cost/

If I were B or C I wouldn't be happy with a friend of A giving the house valuation. I'd want three completely independent valuations.

Also A should be responsible for all bills since the date of death, as they are living in the house. If it all drags on, A should pay rent.

@RB68

Who is executor? It is their responsibility to deal with this. The house and contents that don't belong to A are part of the estate. The estate bears the cost of any legal work. Any valuable contents should be valued, then either A buys from the estate at 2/3rds cost if they want them or they are sold/auctioned and money goes into the estate. If I were executor and A wanted to buy out the others I would get 3x valuations, agree a median/price with all 3 and transfer the house into A name. As stated any legal costs are the estates. Any incidental barely valuable things I would agree an amount with A and put it into the pot (from A) and then it is divided with the remains of the estate . Its not really difficult - but using a solicitor although it will cost maybe a way to ensure all are happy with the agreement reached.

With regards to 8 yrs rent free - you could poke it and look at the intent of the owner - was it something they did as a parent being kind - ie a gift, or was it without the parents knowledge at the time (ie in care or something?) in which case its a bit more tricky - and the 7 years before death become part of the estate (it would be worked out at going rate and then there is a year on year decrease of the value etc but a solicitor could easil do that) but honestly I would want to let that part go unless I thought they were really CF so long as they pay full market rate for the rest. The clean up for market and the house clearance are worth avoiding though - painful having done 2 over last 18 mths

A is the(an) executor.

Yes they can.

Friend was in a similar situation. It went tits up and everyone fell out very badly.

Be wary. Use solicitors. Get proper valuation. Get everything in writing straight away. Avoid any type of verbal agreement.

All 3 of them have to agree on the agents used. They don't have to go with A's friend.

@RedToothBrush

Yes they can.

Friend was in a similar situation. It went tits up and everyone fell out very badly.

Be wary. Use solicitors. Get proper valuation. Get everything in writing straight away. Avoid any type of verbal agreement.

I agree with this. Be careful what is said and use solicitors.

@Pedallleur

Estate agents will always value high. Get a rics valuation. A surveyor who looks at what the property is worth not what it could be worth.

At the moment houses are going for asking or above asking. So valuing high isn't such a fantasy, in terms of asking what they would puit it on the market at.

An independent valuation will cost. Could be £800 or so. But could be money well spent if it prevents family fall outs.

A and a friend of As (a solicitor) are executors.

Is A paying rent a requirement or just desirable?

A wants the estate to pay for ongoing maintenance of the house while probate is sorted. And for the estate to pay the rates.

I was just wondering if it was a possible conflict of interest as A is responsible for getting the house valued for probate and could they influence the agent (a friend) to go for a lower price in their favour.

B and C wouldn't have to go along with any figure named by A, and indeed would be best advised to get their own valuation or a jointly agreed independent valuation, since they are essentially the vendors of their share.

Tell A that it can go as is... unless it ups the value a lot.
Also they should now be paying Market rent as it is now part owned by yourself and B,

It could be easier if A bought it as then you’d have to find a buyer via an EA. Maybe see what properties sold for recently in the area as well as getting valuations. Don’t tell the EA it’s for A to buy you out as it’s a waste of time for them to come out as there’s no financial gain for them. Tell them it’s a probate property

I wouldn’t agree to the estate paying for maintenance.

What’s to stop A putting in a new bathroom or central heating and calling it maintenance, then B&C will have in effect paid two thirds of that cost to the benefit of A.

The house should be valued as it stands.
I agree about not making any verbal agreements, or agreeing to suggestions casually made by A, they may well not be in your own best interest. Get a rent sorted out ASAP, also A should be paying the Rates as they are resident at the property.

It sounds as though A is a pretty sharp cookie, with an eye to the main chance. If you are B or C, hopeishere keep your wits about you, or A will be taking advantage of you. It would be interesting if they have already got their friend lined up as the solicitor!

If I was B & C I would get it valued by someone they’ve chosen and then absolutely let A buy it.

@AdaColeman their friend is the other named executor!

I agree wits must be kept sharp!! They will go ballistic at the suggestion of paying rent.

And for the estate to pay the rates.

Council tax on an empty house during probate isn’t payable

Blardy cheeky to live in the house and expect estate to pay council tax for A to live their 😮

Why not put it on the market for auction, then A can pay the real market price and bid to keep the hone they want, otherwise it’s sold and they get a bigger deposit for another

Yes, what a nerve asking for the estate to pay the Rates when they are the resident at the property!
Have B&C taken meter readings for gas electricity & water ASAP after A became the sole occupant, because those bills are now A’s responsibility, so they aren’t chargeable to the estate either.

A is the executor and resident in the property

council tax is suspended for 6 months after date of death I think. There shouldn't be upgrades e.g. new kitchen as this may increase the value of the property or decrease it if damage was done. Property belongs to the estate at the moment but surely the current inhabitant has to pay their heating etc. They are still living there.

Yes it's legal but recommended for all parties to get independent valuations and independent solicitors and independent legal advice.

When two adults occupy a house and one of them dies, the remaining occupant is liable for Community Tax. They can apply for a 25% reduction for single occupancy.

B&C (I'm assuming you're one of them) need to be very, very sharp.

The house is a mess. Parent left it in state and A has now just piled all their stuff around Parents so it's like a jumble sale. It's depressing. I can't see A ever tidying it up and making it a proper home.

Is this just 'stuff' or is it bad enough to cause the house to depreciate in value, meaning A would have to pay less to buy out B&C?

A wants the estate to pay for ongoing maintenance of the house while probate is sorted.

As long as it is essential maintenance then that is probably reasonable. Any discussion of B&C selling to A is abstract until probate is granted. But it must be essential eg a leaking roof. Not having the roof replaced, new double glazing and a new boiler and then trying to argue that those things (which will increase the value of the house) should be disregarded in the valuation and the value taken as at the time of death.

And for the estate to pay the rates.

Council tax is paid by the occupier. A is living there so A should pay.

It sounds as though B&C suspect that A will take every opportunity to feather his/her nest at their/the estate's expense, and based on what you've said, with good reason. Remember that the will gives equal shares to B&C, and it entirely up to you what you do with your share. A cannot force you to sell to them, and you could rightly insist that the house is sold and you get your share in cash from the sale. This means that if A really wants the house to live in, rather than to profit from, you are in a good position to make sure that what you do is fair to B&C. If they are being grabby and self serving, you say no to them buying it and say you want your cash. The executor has a legal duty to act in the best interests of ALL the beneficiaries.

^^If 'they' are being grabby

By they I mean A. All the theys gets confusing.

@AdaColeman

When two adults occupy a house and one of them dies, the remaining occupant is liable for Community Tax. They can apply for a 25% reduction for single occupancy.

A has been the sole occupier for that time. They moved in when Parent went into a care facility.

Re it being a mess:
It's mess not damaging to the fabric of the house. So just lots of things all over the house, however you would not be able to market the house in its current state.

Thank you everyone this is helping. There was a massive argument with A recently where they accused B and C of trying to make them homeless. A has the cash to buy a house tomorrow if they wanted.

There is also a rental property that is part owned by A and was part owned by Parent. They want Parents share of the rent to now be used for some of the running costs of the main house. Should the share of the rent now be coming to B and C (proportionately) or is that suspended while probate is sorted?

Surely any income or outgoings on the assets are dealt with by the estate not surviving individuals until probate is through. The occupier is liable for council tax and utility bills until then though, as they would be if a paying tenant.