Executor responibilities re property sale of estate

I'm asking on behalf of a relative.

Situation is that 5 siblings (2 brothers & 3 sisters) inherited a rural property in Qld following their mother's (a widow) death. The eldest brother is executor of will. The will stated that the property should be first offered to the brothers who had first right of refusal. If the brothers did not want to buy it then it was to be offered for sale with the proceeds split 5 ways between the siblings. The brothers did not want to buy it.

Fast forward 12 months and the property is not listed for sale. The executor is uncommunicative with most of the siblings, who simply want the property sold. They've heard that the executor is planning on putting a tenant (a relative) into the property.

What are the responsibilities of the executor in this instance? How can he be made to sell the property and distribute funds? Is there a time limit?

 

Lawyers at 20 paces throwing law books at each other? Hope not

 

Unfortunately, you hear of this all too regularly; siblings squabbling over "The Will".
I would of thought the Executors responsibility was to adhere to the instructions within the Will. The siblings need to seek legal advice as to their options. 12 months seems a little long to not have dealt with the matter. Probably going to get ugly!

 

Executor has fiduciary duties and can be personally sued for breaching these. The will contains the rules they must follow plus the relevant legislation.

They should take a copy of the will to a lawyer.

 

The will does not mention timing of when a sale is to be made, just who gets the funds. I thought there might be CGT implications if it drags out timewise.

 

The will probably gives the executor the power to sell at any point. There may be CGT implications.

 

Look at Part 5 of View - Queensland Legislation - Queensland Government

Time to speak to a lawyer.

 

Has Probate been lodged? Sometimes this can take a decent length of time if Estate is complicated.

 

Executor may have a duty to rent it out too - to maximise returns.

 

Depends too who the parties are and what they want. Some want $$$ asap and others are patient and accepting of issues etc. And when a executor is beneficiary they tend to not. Some estates simple and others complex especially where land assets are involved - Offshore even.

 

Just a continuation of the saga. One of the 5 beneficiaries wants to own the property and can payout the other 4 which everyone seems ok with. Can the beneficiary buying do so in their own SMSF?

I know you cannot transfer resi property in your own name into your SMSF but how would it be in this situation?

 

Prob not if they are also executor. As would be acquisition from related party. Need legal advice on the legal and equitable aspects.

 

No. The person transferring is the executor - Who is a relative. If the executor had been an arms length person eg lawyer that problem may have been avoided. s66 of SISA prohibits the transfer.

 

Thanks to you both @Paul@PFI and @Terry_w