QLD Executor of Will Purchasing Property from Estate?

[Heather Davies]

My father died a year ago, leaving my sister as executor of will and his estate and my mother the sole beneficiary. My father made my sister a director of one of his companies after he was diagnosed with demithia, she has since burnt his medical records.

She has told my mother that she must sell a property that is in the company's name. My sister owns the property beside mum's and I believe she is going to buy it herself. She has told my mother that to transfer the property from the company name into hers will cost too much, the property is worth over one million, and is currently rented out.

My sister also lives rent free (separate houses) on another property with my mother, and my mother is scared that if she doesn't do what she says, she will turn against her.

What can I do to stop this abuse?

 

[Rod]

Who owns the shares in which your sister is the director? Is she the sole director?

FYI, shareholders can sack directors at the AGM.

 

[Heather Davies]

Thankyou for your reply, my mother is a director as well and the sole share holder (we think all the paperwork has been taken over to my sisters house and we are not allowed to see it) however she is scared to do anything that might upset my sister.

As she lives on the same property as my mother and she is worried they will turn against her and refuse to leave the property.

My mother is not strong within herself and will not stand up for herself.

Thanking you for your reply.

 

[Rod]

Family dynamics can make the situation awkward. One possible solution is for your mother to give you general power of attorney to deal with these issues.

With 2 directors, it would be highly irregular and possibly a breach of director's duties if your sister, as director, sold to herself a significant company asset without the approval of the other director.

Tackle the issues one at a time and don't try to second the actions of your sister. Being afraid to prevent a misappropriation of company assets due to being afraid of another retaliatory, and possibly illegal, act is not a sound basis for making large financial decisions.

 

[Heather Davies]

Thanks Rod,

I will seek legal help as I know when my mother passes I will require a strong legal presence, I would like to have that ready to be actioned.

Are there fees to transfer the property (rented out) from the Pty. Ltd. company name into my mother's name?

Thank you.

 

[Rod]

Are there fees to transfer the property (rented out) from the Pty. Ltd. company name into my mother's name?

Quite likely stamp duty, possibly capital gains tax. Best talk to your accountant about taxes.

Cheaper for mother to remove daughter as director.