It what circumstance is it possible for an executor to purchase a property from the estate they are administering?
Our solicitors specialise in probate and wills, and offer a free consultation service. Simply call us on 0333 888 0439 or email us at info@probateandwillssolicitors.co.uk
A common question to arise during estate administration is, ‘Can an executor purchase a property from the estate?’
An executor cannot benefit from the estate they are administering or put their personal interests before the best interest of the beneficiaries. This is known in law as ‘the rule against self-dealing’.
Executors have an obligation to act independently, without allowing their personal interests to conflict with the interests of the beneficiaries of the estate.
However, there are some circumstances where an executor may be able to lawfully purchase property from an estate without breaching the self-dealing rule. These include the following:
- where the will states that an executor can purchase the property;
- if all the beneficiaries give their informed consent to the purchase – in order to give consent, all beneficiaries must be over the age of 18, have full mental capacity and there must be no evidence of undue influence or pressure; and
- a court has provided authority or consent for the executor to purchase the property.
Another option is for the executor to stand down and for someone else to take their place. However, this should be done before the executor appointed in the will has taken any steps to begin the administration.
It is important to remember that because executors should always act in the best interest of the beneficiaries they are under a duty to maximise the estate’s value. Therefore any purchase of property by an executor must not be under market value.
How we can help with the question, ‘Can an executor purchase a property from the estate?’
Our team is experienced in advising executors and administrators about the rule against self-dealing. Probate solicitor Steph Rodgers has recently advised an executor on their options to buy an estate property in circumstances when it may not have been possible for all beneficiaries to agree.
