Executor's Dilemma: Can One Sibling Force the Sale of Inherited Property?

An individual is facing a deadlock in administering their late parents' estate, as their co-executor sibling has failed to take any action on selling inherited properties, leading to potential disrepair and compliance issues. The estate, comprising financial products, six rental properties, and the main residence, was to be divided equally. While one sibling has managed the financial assets, the other was tasked with liquidating the properties but has reportedly done nothing.

The properties remain rented, and the Land Registry still lists the deceased parents as owners. The main residence has reportedly fallen into disrepair, incurring a council tax levy for empty homes. Furthermore, one flat requires a landlord license, and upcoming administrative and compliance requirements for rental properties loom, with essential safety certificates like electrical certificates not in place.

As joint executors, both siblings hold legal responsibility for administering the estate and protecting its assets until completion. An informal arrangement for dividing duties does not alter these legal obligations. The inaction poses risks, including reduced estate value, additional costs, and potential liability claims, especially concerning rental income that should be accounted for since the mother's death in 2023.

Addressing the Stalemate

Before considering legal action, the first step suggested is to formally write to the inactive sibling. This letter should detail the outstanding issues, request an update on the properties, any rental income and expenditure, and outline proposed steps for marketing and selling the properties to conclude the administration. Urgent matters like repairs, safety measures, or compliance work should also be raised in writing, with careful records kept.

If the sibling continues to be unresponsive, the court has powers to intervene. While orders can be sought for the sale of specific assets, this may not resolve the underlying issue of an unwilling executor. A more effective solution could be an application to the court to remove and replace the non-cooperative executor. The court's priority is the proper and timely administration of the estate. If an executor's inaction prevents this, the court is likely to appoint a replacement. Such applications can be costly, making a resolution through correspondence advisable initially.

Inheritance Tax Considerations

Regarding inheritance tax, the understanding that HMRC automatically claims 40% of any increase in property value upon sale is not entirely accurate. Generally, inheritance tax is based on the property's value at the date of death. Subsequent increases in value typically fall under capital gains tax rules. If a property sells for less than its probate value, reliefs may be available that can reduce the inheritance tax payable, potentially leading to a refund. Given the number of properties, seeking specialist tax advice before any sales occur is recommended.