Q: I own 20% of my deceased mother's estate, the attorney tell me I can't buy out the other heirs,why can't i?
Dad and Mom had 5 children, dad passed away 40 years ago mom passed away 2001, house was never probated. One of the sisters lived in the estate for 15 years, then my sister became ill and her daughter try to probate the estate intestate, she being aware of a will but still proceeded, I petition the court to execute the will, I am the executor of the estate. three sisters now are deceased just my brother and myself living but the heirs must be paid. I want to buy the house but my attorney says I can't, the attorney claims I cannot buy out 80%. In this day and age it would be pretty stupid of me to sell this property, although I'm Bound by the court to do so.
A: The executor can buy a house out of probate but would require a petition to court and the written consent of all heirs. Or could do a distribution agreement. Again requiring all heirs to sign. If any heirs are minors might need to have an official guardian ad litem appointed in court.
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A:
Mr. Palley is correct. The executor/beneficiary can "buy out" the other beneficiaries if the court approves of the sale. The rule of thumb is that this requires all the other beneficiaries to approve of the purchase.
I say this is a "rule of thumb" in that only court approval of the self-dealing transaction is required. However, if any beneficiary were to object the court will require the property sold on the open market. This is because the conventional wisdom is that a market sale provides the best and highest price for the property.
At the very least, a beneficiary objection would cause a court to require court confirmation of the "inside" sale, which provides for open bidding on the property.
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