Do properties have to be sold for probate?

[Amgoingtoburst]

My wife's uncle has a home in the UK and a holiday home abroad. She and her siblings are executors of his will. The UK home will have to be sold to cover death duties, but what is the situation with the property abroad if one sibling wants to hold on to the property but one or both of the others don't?
Can they force a sale? Or if one or two siblings want to hold on to the property, would they be forced to take that from their share of the inheritance?
Is there a situation where a sibling that didn't want ownership of the foreign property would be forced to either accept it or, or forfeit part of their share?

depends what the will says

It largely depends on what the will actually says.

If the will says something in particular about what happens to the holiday home, then that is what should happen (for example, it may say that the holiday home must be sold).

If the will is silent on the holiday home then it is just part of the total value of the estate that the executors need to distribute according to the will. In that situation the executors can choose to transfer the property directly to the beneficiaries.

It sounds as though the estate may have been left equally to three children.

If all three children agree to take ownership of the property then that can happen. However, if one beneficiary wants their share in cash then they cannot be forced to take a share in the holiday home.

If there is not sufficient money in the rest of the estate so that each beneficiary gets their share, then the holiday home will have to be sold.

"Or if one or two siblings want to hold on to the property, would they be forced to take that from their share of the inheritance?"

Yes (unless the will said otherwise)

"Is there a situation where a sibling that didn't want ownership of the foreign property would be forced to either accept it or, or forfeit part of their share?"

Only if this situation was specifically mentioned in the will.

@AmgoingtoburstAssuming it’s left to all the siblings in equal amounts, the one who wants to keep it, can buy the others out based on agreed valuation. Or, if they cannot afford it, usually the majority view takes precedence. If it didn’t, the executors cannot give the beneficiaries what they are due. A minority view should not prevent others inheriting the monetary value and property costs money to maintain. If it’s been stipulated in the will that it’s not be sold, it’s not usually sold. Leaving a property without clear instructions is a nightmare because it’s open to interpretation and disagreements.

Probate, I believe, can be applied for without it being sold but IHT will be due on the estate, from what you say, and that has a time limit for payment.

I would think it would also depend on which country the holiday home is and what the inheritance rules are there - France has some particular rules about the inheritance of property, I think.

"Or, if they cannot afford it, usually the majority view takes precedence."

I'm not sure that I would agree with this point. Unless the will states that a property must not be sold, or it is left as a specific bequest, then all beneficiaries must agree to the appropriation.

See Section 41(1)(ii)(a), Administration of Estates Act 1925

In plain words, this says that if the executors want to leave some property (not just a house, but it could be a car or a painting or jewellery or shares etc) as part of their inheritance - rather than cash - then the beneficiary has to agree to this.

@Another2Cats I’m sure you are better informed than me, but people I’ve known have persuaded one beneficiary to sell because the others had no money for upkeep. It was going to cost a lot of money and the one who wanted it, could either buy the others out, or they could sell. It’s a poisoned chalice if you don’t have money for upkeep.

What country? I have a property in Spain and there are law los of heirship there, and specific wording must be used to override it. I now co own it with my siblings. In my English Will it is excluded as it is covered by my Spanish will. If two wanted to sell and the other didn’t there are three options: the one buys the other two out; they sell and divide; the keeper refuses to sign the document to sell so a court will order the property to be sold at auction, risking getting a lower price. It is similar in France and Italy - no one can be forced to co own a property so it is resolved in one of the ways above.

Oh, I'm really sorry. I totally misunderstood what you were saying.

I thought you saying that if the majority want to keep the property then all of them have to keep it.

Sorry, I got what you were saying totally the wrong way round. Yes, if one beneficiary wants to keep a property and another doesn't then they need to buy the others out.

Sorry for that.

Seek legal advice, particularly as the property is in another country.

I would say if it's an equal ( say 4 x split ) then value of entire inheritance is added up so money , value of properties & chattels etc , then that amount is split in 4 and then the division of said amount could be in money value or / and in property .
So person who does not want property gets more of the actual money than those who are retaining it in property .

@Jennalong Yes, if there’s money in the estate to compensate. Can be very difficult if there isn’t. As IHT is payable here, there could be but if it’s being based on property values, there might not be enough.

If the uk home has to be sold to cover IHT it is clearly a substantial estate so can the siblings not use their cash inheritance to buy other siblings’ share in the holiday house?

A Deed of Variation can be used to vary the terms of a Will as long as it is the beneficiaries who sign. So it couldn’t be used to force someone to sell, but could be used to agree to sell shares of the house to other beneficiaries?

@TabarnakI guess it depends if most wealth is in properties or not. If they don’t have £1/3 needed for the tax, they might well have to sell as there’s not enough alternative liquid investments. I assume they could sell the overseas property?