Purchasing Estate Assets
Deceased estates are not without their challenges.
Perhaps one of the more common challenges arises where one (or more) of the beneficiaries of the estate wants to purchase an estate asset – e.g. the family home or perhaps a vehicle.
The executors of an estate have a legal obligation to protect the interests of the residuary beneficiaries.
That means all of the residuary beneficiaries – not just the ones they like.
In practical terms, this means that the executors are obligated to realise the maximum value of the estate – i.e. sell the estate’s assets for something approximating market value.
Consequently, an executor who decides to cut one (or more) of the beneficiaries a sweetheart deal on the family home without the approval of the other beneficiaries, is playing with fire.
Aside from potentially laying a foundation for family conflict, they are putting themselves in harm’s way from a legal point of view.
There are many different roles within this scenario: the executor of the estate, the beneficiary wishing to buy an estate asset, or another residuary beneficiary. Whichever applies to you, and you require advice, give is a call 03 477 8080.