Responsibility for Property in a Deceased Estate
Responsibility for property in a deceased estate falls within the remit of the executor. Although this responsibility must be confirmed by a grant of probate or letters of administration for it to be legal. The executor must then act as if they were the owner, and deal with any issues that come up regarding the property.
This Role is Part of a Bigger Picture
Responsibility for property in a deceased estate is not the only task of the executor. They must complete the administration of the entire estate, in accordance with the will and any letter of wishes.
Other duties include transferring and / or selling the assets, dealing with inheritance tax, and a whole raft of other things. Taking on the executor role is therefore something to consider deeply before accepting.
Types of Property Ownership in a Deceased Estate
SOLE OWNERSHIP
The deceased was the sole owner of the property. The entire asset must transfer to a new owner in accordance with the will.
JOINT TENANCY
The deceased owned the property jointly with one or more co-owners. The deceased’s portion passes directly to the other co-owner(s).
TENANCY IN COMMON
The deceased owned a share in the property. The executor must transfer their share to another person in accordance with the will.
Priority Tasks of the Executor of the Estate
INSURANCE
The executor with responsibility for property in a deceased estate, must move rapidly to secure the asset. Their first step is to arrange insurance, depending on whether the property is occupied or not.
UTILITIES
The utility companies should be the next port of call. The executor must negotiate whether payments may be delayed, or whether they should open new accounts in the name of the estate.
INCOMING MAIL
Letters may start to flood in the deceased’s letter box as news of their death spreads. Some mail will need urgent attention. Take the death certificate to the local post office, and redirect the mail.
Other People Living On the Deceased’s Property
There may be other people living on the deceased’s property. You cannot ride roughshod over their rights. Investigate the nature of their tenancy and act accordingly,
If the deceased was the sole owner, then they may be family and friends, perhaps even their heirs too. Otherwise they may be ordinary tenants living under a lease agreement. Come to an agreement and document it.
But perhaps the deceased was a joint owner with another person or persons. The deceased’s share devolves naturally to them. Introduce yourself and discuss transferring the deceased’s share to them.
However, if the deceased was a tenant in common, then this is another matter. Perhaps the other joint tenants would like to purchase the deceased’s share. Introduce yourself and discuss what should happen next.
Transferring the Property From the Deceased
You may not distribute any of the assets until you have a grant of probate or letters of administration, have advertised the death, and have settled the debts including inheritance tax. After that are two possibilities:
- If the property passes to an heir or heirs under the will, then you can begin the process provided you have probate or letters of administration.
- If you decide to sell the property or a share thereof, then you may start the process. Have the property valued first so you know your price is fair.
The Register of Property Ownership in England
HM Land Registry is the government institution that maintains property records in England and Wales, and attends to transfers. They publish details of property owners and boundaries on their website, and this constitutes the official public record. You need to add your transaction to their database.
Valuing Property in a Deceased Estate
The executor of a deceased estate is personally responsible for valuing the property, investments and other, personal possessions. There are several reasons why executors need to tackle this aspect of their responsibility for property in a deceased estate with care.
- If the estate is to be divided into equal shares, then the only objective way to achieve this is in terms of value. If a property or a substantial asset is valued incorrectly, then this can give rise to disputes.
- HM Land registry bases its fees on the value of the subject property, and could hold the executor personally liable, if an incorrect valuation places the transaction in a lower fee band. A similar problem will arise, if the undervaluation results in less inheritance tax being paid than what is due.
- An executor could be accused of malpractice, if they sell a property out of the estate to a third party for less than what it is worth. The heirs could lodge a serious objection, if they end up inheriting less that their full entitlement.
Avery Associates offers a full estate valuation service throughout Greater London. We can arrange a professional RICS valuation that should withstand any queries. Our panel of professional valuers can also take care of the personal possessions. And as an added bonus, we could clear the property and leave it clean and ready to sell.
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