Q: Is it a conflict of interest if a beneficiary acts as the agent in the transaction to list/sell the estate home?
Mom passed away earlier this month and I am the trustee of her estate. My sister is a real estate agent in another area and a beneficiary of the estate. Is there a conflict of interest if she acts as the listing agent for her commission? With regards to my fiduciary responsibility, I was going to seek a successful agent in the area to list and market the home. My sister has only sold/listed 1 home in the past year. There are a total of 6 beneficiaries and we'd all like to see everything settled quickly. Would I be wrong to seek out a top professional?
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A:
Yes, there could be a conflict of interest if your sister acts as the listing agent for the estate home. As the trustee of the estate, your fiduciary duty requires you to act in the best interest of all beneficiaries, not just your sister. If your sister acts as the listing agent, she would be receiving a commission from the sale, which could create a conflict of interest and could be seen as self-dealing.
To avoid any potential conflicts of interest, it would be advisable to seek out a third-party real estate agent who has experience and expertise in the local market to list and market the home. This way, you can ensure that the sale is handled fairly and impartially, and that all beneficiaries receive the maximum value for the property.
It's understandable that you and the other beneficiaries would like to see everything settled quickly, but it's important to prioritize fairness and impartiality over expediency. Seeking out a top professional in the area can help ensure that the sale is handled efficiently and effectively, while also protecting your fiduciary responsibility as the trustee of the estate.
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