Q: My mom inherited a beach house in Avalon NJ with her 4 other siblings. She wants to keep the house, but they want to sell it. She doesn’t have the funds to buy out all 4 siblings, so to keep the house in the family I was looking to purchase the house, using her inheritance money that she would give to me from the house as a down payment. Can this work? (Murrysville, PA)
A: It would be up to the other 4 siblings to agree on a sales price that is fair to all. If you agree with that price, I do not see why this could not work if everyone wants it to. This happens from time to time during the administration of estates. One heir wants to buy the family home using their inheritance as part of the consideration. It can work.
Q. Can an executor sell the home in the estate to a co executor at a discount without approval from the beneficiary?
A. The last time I visited that subject here in Allegheny County, an executor needs to seek court approval to purchase real estate owned by an estate. It is a conflict of interest for the executor to sell realty to himself or herself. If the beneficiary is in agreement with it, and the agreed upon sales price is not ridiculously low, things should go well with the judge. If the beneficiary is not in agreement with it, there could be a problem. The judge may require a hearing with notice provided to the beneficiary to attend. In this case, the purchase price should be fair or at least reflect being close to fair market value. Real estate appraisals may be required.