Executor has sold estate property to a friend

Trusts Discussion
1

Hi

I am working for a charity residuary beneficiary of an estate where there are two executors, one lay and one a solicitor, and the estate property has been sold to a friend of the lay executor without having been marketed.

My question is: As the sale is not an arms length transaction, do all the residuary beneficiaries need to approve the sale, even though the sale is not to the executor?

Thanks

Kate

2

On the basis that both executors should have been party to the transaction, I would ask the solicitor to confirm the basis on which they were satisfied that the transaction was made at the full market value.

Whilst the sale has not been made to one of the executors, the circumstances seem to be such as to arouse suspicion – which they have clearly done.

Where personal representatives propose to sell a property without it being properly marketed, I would normally expect them to agree the principle and price parameters with the beneficiaries.

Paul Saunders FCIB TEP

Independent Trust Consultant

Providing support and advice to fellow professionals

3

Thanks, Paul
Kind regards
Kate