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Original poster

Conflict of interest- inheritance

138 replies

hopeishere · 21/02/2022 18:12

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?

OP posts:
Original poster
hopeishere · 22/02/2022 07:52

But A is the executor (jointly) so they're in charge of ongoing payments / finances.

OP posts:
Sausagedogsarethebest · 22/02/2022 08:15

When I sorted probate after my DF died, I believe the advice was to get any property valued by a surveyor rather than an estate agent. EAs inflate prices, whereas a surveyor will value it at its worth.

I definitely wouldn't be happy for A to use a friend to value it. If A insists, then B and C should also insist that one or two independent agents value it too.

NeedToKnow101 · 22/02/2022 08:40

Been through this very similar situation with my sibling, down to his mess being all over the house (he refused to put his boxes of unused crap in storage so it looked less attractive to EA / potential buyers), and asking for the Estate to pay the council tax and utilities even though he was living there (Fuck off!). He also refused to pay anything close to market rent and stalled on this and on everything tbh. We don't speak anymore.

For your own sanity I advise everything in emails so you have a record of it. Or use a solicitor of your own to communicate with A, although he may just use that as an expensive stalling tactic. But if you have a good solicitor who can convince him to pay market rent in the meantime, maybe it's worth it?

Depending on your own financial situation, I'd try and get exact market rate for the property (e.g. what someone would currently buy it at, minus EA and clearance fees).

Although if 10-15k means nothing to you, maybe that's not such an issue.

Btw re: the sale, A pays their own solicitor fees to buy out you and sibling. You both pay for your own solicitor. Unless you can just transfer the deeds? In my case we were told it should legally proceed like a regular sale. (Maybe that's incorrect? Not sure).

Interested in this thread?

Then you might like threads about this subject:

General money
LIZS · 22/02/2022 08:55

@hopeishere

But A is the executor (jointly) so they're in charge of ongoing payments / finances.
You need to separate A's role as joint executor from their personal interest. They can deal with issues on behalf of the estate ie. Getting valuations but these have to be impartial. The ongoing costs of the rental and property are met by whoever lives there, while a proportion if the rental income is ring-fenced to the estate.
NeedToKnow101 · 22/02/2022 08:56

Yes and they need to keep a record/ spreadsheet of Estate costs and receipts.

RedToothBrush · 22/02/2022 08:57

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.

Its not legal to do this, and is challengable in court as it could be considered a tax dodge.

Executor should get several valuation - that are agreed by the beneficiaries in order to protect themselves from this risk.

The conflict of interest here is covered by this possibility. If the other parties feel they are being done, its a fairly easy contest in court.

Executive has to realise that they cannot just buy the property without agreement if the beneficiaries for this reason. They should also realise the estate is liable for fees should they be forced to sell on the open market.

As i say get solicitor, get things in writing. Nothing verbal or you will end up with disputes.

RedToothBrush · 22/02/2022 09:04

Tbh given the situation i doubt you can retain a healthy relationship because they will take the piss. B and C would be wise to get legal advice early on and keep it in that manner - it is the best way to protect yourself and to limit damage to relationship. A will not like it, but it will be less stressful.

Get it in writing that the valuation must be fair and agreed on by all parties or you will be willing to contest legally.

Original poster
hopeishere · 22/02/2022 09:17

A will go ballistic if B and C get legal advice. They are a very manipulative and angry person.

OP posts:
DetailMouse · 22/02/2022 09:22

B & C need to put everything in the hands of a solicitor and have all dealings through them. A may not like it but they need to have the same conversations anyway and it will be easier if they don't have them direct

RedToothBrush · 22/02/2022 09:23

@hopeishere

A will go ballistic if B and C get legal advice. They are a very manipulative and angry person.
Thats precisely the reason you should get legal advice though!

This isn't going to end well regardless of how you do it. If its all on their terms you will always resent them and feel cheated.

Their response is not yours to manage or be responsible for. If they cannot be reasonable then the relationship, even if you are siblings, isn't worth maintaining anyway.

They have already taken the piss by moving in.

RedToothBrush · 22/02/2022 09:23

Put it another way. They are quite happy and comfortable to steal from B and C.

LIZS · 22/02/2022 09:35

Does it matter if A is angry? Tbh B and C going softly softly is just going to lead to them feeling hard done by, if they don't already. Estates are a matter of public record and a solicitor, if that is what A's friend is, have strict rules to follow. Failure to do so can have serious professional repercussions.

Original poster
hopeishere · 22/02/2022 09:45

It maybe doesn't 'matter' that A is angry it's just very hard to deal with that and attempt to have any sort of relationship once this is all done and dusted.

A likes to pretend it's one big happy family Hmm

OP posts:
RedToothBrush · 22/02/2022 09:50

@hopeishere

It maybe doesn't 'matter' that A is angry it's just very hard to deal with that and attempt to have any sort of relationship once this is all done and dusted.

A likes to pretend it's one big happy family Hmm

Of course. But reality is a different thing.

A is used to getting their way. B and C standing up to them isn't something they are used to. A might be happy with this arrangement, but thats not the experience of B and C and they have a right to say so.

The reason A gets angry is to control B and C and to intimidate them. Its to stop them from asserting themselves.

A is willing to rip off B and C and the angry is about being picked up on this. They can scream about trust but they have demonstrated they can't be trusted.

A reasonable person wouldn't have a problem with getting someone independent to get a fair valuation.

Keep this in mind.

All this is about keeping B and C in their place for the selfish benefit of A. A does not give a shit about the interests of B and C nor about any sense of fairness.

Get legal advice.

Original poster
hopeishere · 22/02/2022 09:50

@RedToothBrush

Put it another way. They are quite happy and comfortable to steal from B and C.
They convince themselves that they are always in the right. So them living there now is better for insurance purposes for example.

They offered a valuable item from the estate to C but it then transpired they wanted to keep a similar but more valuable item for themselves and had already paid to have it fixed. It's so messy. Sad

OP posts:
Gasp0deTheW0nderD0g · 22/02/2022 09:51

Is inheritance tax going to be payable? If so, somebody has mentioned above that HMRC will expect the valuation of the house to be based on three independent professional valuations. So that's non-negotiable, and A can fulminate to A's heart's content, but that's what has to happen.

Also, A's solicitor friend who is co-executor has to abide by professional standards or could face disciplinary proceedings. So there's that.

OinkyO · 22/02/2022 09:51

@hopeishere

A will go ballistic if B and C get legal advice. They are a very manipulative and angry person.
Even more reason for B & C to seek legal advice. It's not about getting the most they can or making anyone homeless. It's about being fair.
OinkyO · 22/02/2022 09:52

@hopeishere

It maybe doesn't 'matter' that A is angry it's just very hard to deal with that and attempt to have any sort of relationship once this is all done and dusted.

A likes to pretend it's one big happy family Hmm

It's clearly not though. It sounds like it's just going to get messier and nastier without B&C going through solicitors tbh.
SockFluffInTheBath · 22/02/2022 09:56

We had something similar when my dad died. The property was valued by 3 estate agents (agreed by all) and the average was used, no haggling or negotiation.

RedToothBrush · 22/02/2022 10:02

A doesn't seem to understand they don't own the house. They have conflated living there with it being theirs already.

Its no. And they have no more rights than B or C to the house.

Together should get an inventory of things of value and of sentimental value in the house, to split fairly. If they don't want to do that, again its being obstructive and trying to steal from you.

If they are not doing their role as executor correctly, take legal steps to remove them.

Mindymomo · 22/02/2022 10:07

When my father died, his house was left to us 3 children. My brother lived there and wanted to stay, so we valued the property and he paid us each one third. We saw a Solicitor, as although he paid my sister all the money, I agreed for him to pay me over 5 years. The solicitor had both our names put on the title documents, until he paid me all the money. It was agreed that any work that needed doing in this time, my brother would have to pay. The solicitor warned us that in her opinion the best way would have been to sell the property after probate and divide 3 ways, but it’s worked out ok. My brother has virtually paid me all the money, but has little left to live on, but still wants me on the title documents. He is single, only me and sister as family, but if anything big needed to be done on the house, he wouldn’t be able to pay.

It’s better all round to get legal advice, with everything in writing so there’s no comeback later on.

ivykaty44 · 22/02/2022 10:31

They offered a valuable item from the estate to C but it then transpired they wanted to keep a similar but more valuable item for themselves and had already paid to have it fixed. It's so messy.

thats why an auction of all the household good is in many ways fairer

you bid on the items you want and then the highest bidder gets to pay for the item - the money goes into the estate and is slip 3 ways

Obviously the more you pay for the item the more there is that goes into the estate

Original poster
hopeishere · 22/02/2022 10:34

Thanks again everyone. You're right A uses anger to control B and C and to get their own way. They interfered with the arrangements for B and C's weddings and got their own way.

A lot to think about. It's hard to reason with an unreasonable person.

OP posts:
LIZS · 22/02/2022 10:35

Which is why it might be better to get a solicitor who can deal with the other executor.

RedToothBrush · 22/02/2022 10:37

@hopeishere

Thanks again everyone. You're right A uses anger to control B and C and to get their own way. They interfered with the arrangements for B and C's weddings and got their own way.

A lot to think about. It's hard to reason with an unreasonable person.

You can't reason with an unreasonable person.

Thats the point.

You have to insist and not back down with an unreasonable person because they only listen to something when its forced upon them. Thats what they do to everyone else.