Probate sale

[MyEyesHurt]

IABU because it's absolutely none of my business but I just need to vent.

Grandma has died. Her house passes to her two daughters but also four step children, so the house must be sold and will go six ways. I'm told this is fair because her husband had put more money into the purchase, which I'm a bit suspicious about because when she married him aged 70, i know how much her previous house sold for. However, that part is none of my business, maybe she spent the money on biscuits. I don't know.

Anyway mum, joint executor with her sis, said she would put it on sale on the open market and asked the solicitor to do so. Auntie had the keys and solicitor asked auntie for them for viewings.

Before the keys were handed over, my cousin has made an offer on the house, of below what my grandma paid for it back 17 years ago. Similar sales on the street are about 60k-90k higher than this offer.

Mum had anticipated this and had decided to get it valued anyway for fairness.

Fast forward to now and my cousins offer has been accepted by the 6, as one of the step sons argued that they could save on estate agent fees that way. They also argued that the market has cooled.

If is absolutely not my business. The money will not be passing to me.

However in the back of my mind it feels like my cousin has just scored a huge discount on her house - which I shoukd be happy about, what's wrong with me? And the six all get a little less that could have been passed on to all the grandkids if they weren't that in need of it, though I'm sure they would all find uses for an extra 10k :-)

For context this is coming from me having seriously struggled to buy a house 5 months ago. My work hasn't been doing very well so I've been really cutting back, as in no new clothes for me for a few years.

So to the point:
I am definitely BU so I don't need MN to make me feel dreadful, and I haven't acted on my opinion at all. but what I do need is ways to bloody get over myself and forget it. Any tips please?

Last bit of context, I see the cousin next to never and she has me on restricted settings on fb, so we're not really close. That doesn't mean I don't like her, but I'll realistically never go to that house again, same as if it had sole on the open market.

I have mentioned it a couple of times now, but in your first post you said that your mother and her sibling were the executors? In this case it is for the two of them to reach agreement, nobody else.

Auntie and mum are the executors. Auntie agrees because it means a lower price for her daughter.

My mum doesn't want to cause a rift so has accepted it.

It is I who as the first poster said, is unimpressed. Yet it's not my affair.

Yes you're right but that's easier said than done.

I get you OP. It doesn't feel fair that your grandmothers half of the estate doesn't go to her offspring and your step grandfathers half goes to his. Nothing you can do about that now as that is how he drafted his will.

A 10% reduction on price to sell to family feels fair as you save on estate agents and the faff about of viewings etc. it's sounds like your cousin is getting closer to 30% which is huge.

Your mum should speak up and negotiate a better price. If your aunt wants her child to still pay less then she should be taking a smaller share from the estate. Effectively passing on the inheritance early to her child.

Won't they have had to report the value of the house to HMRC?

Actually I would be surprised if a solicitor would say this is advisable to the executors.

If the beneficiaries/executors are in agreement that a quick sale is wanted, I would guess the correct solution would probably be to send the property to auction, at which the cousin would be allowed to bid.

Anyway to me your mum either gets 200/6 or 140/6 so (potentially) loses 10k if the house is of the 200k value ? So it's a question of whether keeping the relationship with the aunt is worth that amount of money.

CFs generally get to be CFs because no one will stand up to them and are scared of the consequences. People have their choices.

The beneficiaries all agreed on the sale price (knowing what their cut would be) so I can't understand what possible objections there would be.

It may be that the price they've agreed stays below a taxation band which would be a charge on the estate. It certainly avoids EA fees and saves a lot of time and sidesteps any need to prepare the property and contents before letting in viewers.

This will be what's called a "transaction at undervalue" and will have financial implications, which the solicitor will have told your mum and sister about hopefully. The main one is if one of the sellers is declared bankrupt after the sale has completed. The following link explains more. Please ensure your mum and aunt (and the other 4 sellers), are aware of this.

Selling A Property To A Family Member At Below Market Value (propertyroad.co.uk)

Seems fair if they all agreed

Thanks. In reading the article I don't think it applies however, there are no care home fees and the seller won't go bankrupt as she is deceased.

The sellers are effectively the 6 or the 2 execs.

I'd feel a bit odd but you mum is only losing £10k. And will get around £30k. Neither life hanging amounts to any of the 6.

But the £60k under offer by the cousin would annoy me. They should offer it to any family for that and see if any other person also wants it maybe?

Yes, bang on. My cousin goes on four foreign holidays per year as well, so it's hard to feel too much sympathy I think.

@MyEyesHurt The seller is not your grandma, it is the 6 people who have inherited the property. The minute your gran died, these 6 became the owners. Your mum and sister will have to officially transfer the property as executors to the 6 people who are now the owners (for Land Registry purposes), and then the 6 will then transfer it on to your cousin. Any one of these 6 becoming bankrupt within 5 years of the sale (unlikely, but not impossible), and your cousin may find the Official Receiver coming after her. Hopefully her solicitor will put some indemnity policy to cover this. In addition all 6 should be signing declarations of solvency before the sale goes through.

Ah thanks for explaining, that makes more sense!

I don't understand what you're saying. AFAIK the answer to your questions is no, so I don't understand what you mean by it makes more sense than I'd have you believe. Could you explain?

Why do you say that?

Are you my cousin?
If so, why have you got me on restricted settings on Facebook?

But we almost never interact! You're nice to my face though. Maybe just go ahead and unfriend me...?

Effectively the cousin is receiving a gift of sorts. The cousin could technically put the property back on the market the day after completion of the purchase and make a nice little profit. I'm sure the beneficiaries wouldn't be too happy then.

It's worth pointing out that execs have a legal duty in their position as executors to the estate to get the best possible price for the property and sell at market value. The other beneficiaries might agree now, but if things turn sour they can sue the executors for the difference in value and the execs would be personally liable. Your mum and auntie need to look into executor legal duties and obligations. There is also a conflict of interests as your auntie is an executor but also the mother of the purchaser getting this at undervalue.

Are there any estate debts? IHT liable estate? Either way, IHT forms will need a valuation putting on there but the market price won't reflect the sale price? Potential HMRC issues.

How is the cousin purchasing- lender? Cash? If lender, potential issues there too.

The cousin should pay the market value, this is legally accurate and also morally tbh. The difference in estate agent fees will be couple of hundred for the sake of an extra £10k plus each beneficiaries too? The housing market is still very active. If it didn't sell after X months, then a reduction could be considered and as a pp has said, if a quick sale is wanted then put the property to auction and the cousin can bid with everyone else.

The Executors have to do the best for the estate, but if the beneficiaries know what's happening and agree, that's it the decision is made. If I were a beneficiary and happy to accept my sixth of whatever the offer was, I'd be peaved if things changed now. Also, for some it won't be about the money, it's dealing with the emotional side of things and every time the estate is raised, it brings any emotions to the forefront.