If one beneficiary wants to buy a house from the estate of a deceased parent with several other beneficiaries, how should that work?
Get Legal Help Today
Compare Quotes From Top Companies and Save
Secured with SHA-256 Encryption
If one beneficiary wants to buy a house from the estate of a deceased parent with several other beneficiaries, how should that work?
Does the purchaser pay for the value of the property and then the remaining beneficiaries split the profit, or would the profit also be split with the purchaser being that he/she is due their share of the estate?
Asked on August 14, 2015 under Estate Planning, West Virginia
Answers:
SJZ, Member, New York Bar / FreeAdvice Contributing Attorney
Answered 8 years ago | Contributor
If he/she buys it before the estate is distributed to the beneficiaries, which is what your question seems to indicate, then the proceeds go to the estate, to be divided among all beneficiaires (including the purchaser) as set out in the will or as determined by the rules of intestate success. However, the purchaser has the right to disclaim part of an inheritance, so in theory, he could use that to reduce the price he pays, subject to the approval of the administrator or executor.
For example: normally, say that house is worth $400k and there are 5 equal beneficiaries. Ignoring all costs, debts, etc. for the sake of simplicity, he would pay $400k, then would get $80k back when the sale proceeds are distributed 5 ways.
If he disclaimed his share, then he wouldn't get $80k. The estate could take $320k, distribute it 4 ways, and the other beneficiaries woudl come out to the same place economically.
IMPORTANT NOTICE: The Answer(s) provided above are for general information only. The attorney providing the answer was not serving as the attorney for the person submitting the question or in any attorney-client relationship with such person. Laws may vary from state to state, and sometimes change. Tiny variations in the facts, or a fact not set forth in a question, often can change a legal outcome or an attorney's conclusion. Although AttorneyPages.com has verified the attorney was admitted to practice law in at least one jurisdiction, he or she may not be authorized to practice law in the jurisdiction referred to in the question, nor is he or she necessarily experienced in the area of the law involved. Unlike the information in the Answer(s) above, upon which you should NOT rely, for personal advice you can rely upon we suggest you retain an attorney to represent you.