NSW Beneficiary Selling Inherited Home - Can Others Contest?

[snoop]

Good afternoon,

If a beneficiary decides to sell the marital home post settlement of the estate, could the other beneficiaries contest the settlement?

The main beneficiary of a deceased estate, which settled in April (I was the Executor of Will) is now looking at selling as opposed to renovating/repairing the home they shared with their deceased partner. The valuation completed 12 months ago was an estate valuation not a market valuation. With property prices going through the roof since the valuation she has been advised that it's not worth investing in the home if she plans to sell within 5 years as the market value is in the land not the house.

She is now thinking of downsizing instead of going down the reno path. I'm concerned though the other beneficiaries will challenge their distribution amount as the variation would be $400,000+.

 

[Rod]

I am confused by your post. What do you mean by "The main beneficiary of an estate which settled in April ( I was the Executor ) is now looking at selling as opposed to renovating/repairing the home they shared with their deceased partner."

Has the estate been distributed? If so, what prevents the main beneficiary doing what they like with the property? Or do they only have a life estate? In which case they are not obligated to stay in the property and can request a sale.

 

[snoop]

I am confused by your post. What do you mean by "The main beneficiary of an estate which settled in April ( I was the Executor ) is now looking at selling as opposed to renovating/repairing the home they shared with their deceased partner."

Has the estate been distributed? If so, what prevents the main beneficiary doing what they like with the property? Or do they only have a life estate? In which case they are not obligated to stay in the property and can request a sale.

Hi, the estate has been distributed. In the will there multiple beneficiarys who all received a % of the estate of which the martial home was the main piece of the estate. The other beneficiaries were all paid out by one of the beneficiaries who received a portion of 50% of the estate. They now own the house outright. I appreciate I may not make sense....

However they have been told by someone to be careful, with housing prices booming the variance between the estate valuation and what they would get is substantial and the other beneficiaries may lodge claims for some of the sale proceeds.

Note also she and I are close friends. I know it may sound stupid, but I just want to make sure she will be ok and is not vulnerable to a legal battle....

 

[Rod]

Once beneficiaries have been paid out and dues process has been followed, then you are likely to be OK. It is a little worrying that you went with a real estate valuation and not a certified valuation. In either case, valuations are done at the time you are performing your duties as executor, not 12 or 24 months later when prices have moved.

 

[snoop]

Ok thanks Rod. Just to clarify, for the estate I did get a certified valuation, not a market valuation. Looking at recent sale prices in the area/street for similiar land sizes she would be looking at getting around $500,000 more than the estate valuation as it's developers buying then building multiple dwellings. Sounds like there potentially may be an issue. I say this due to your words above and the fact that I know two of the beneficiaries are - in my opinion - are not the nicest of people......I will let her know your comments/feedback and suggest that perhaps she look at staying put for a while. To be honest I think a Real Estate salesman has done the hard sell on her to try to get a listing.