Simple Florida probate question

[stan182]

Hi, I have a simple question pertaining to the liquidation of an estate in Florida (I live out of state).

My father passed on in October and a family member (child of my deceased sister) with whom all the children beneficiaries have a strained relationship is the executor. We feel that she does not have our best interests in mind when liquidating some assets. Specifically, a couple of antique cars. My sister and I would like to purchase these vehicles from the estate, and I understand that she must offer the right of first refusal to beneficiaries before she sells it (is that the law in FL?). If that is the case, we have to match the best price she is offered, which we have no problem with. However, what contstitutes a legitimate offer? So far, she received one call from someone who offered her X dollars on one of the vehicles, sight unseen. Anyone who has sold a car privately knows that such time-wasters come out of the woodwork , and have no intention of buying, so that is very likely not a legitimate offer.

My direct question: is the executor required to receive offers for assets in writing as documentation for the beneficiaries or the probate court? If not, is it simply her word that she received the offer, and she determines if it's legitimate?

Are beneficiaries entitled by law to see all appraisals prior to liquidation? She is not forthcoming with the information we request, and we're not sure how to handle it without making her more inclined to spite us.

Thanks so very much for the assistance.

 

[fredrikklaw]

Self-Dealing Prohibited!

As the executor, he has his work cut out and a heavy load at that. But first and foremost, the executor has to inventory the estate's properties and assets, be it tangible, intangible, real and personal properties, for presentation to probate judge who will issue final order of distribution.

The inventory not only should include an accurate legal description and statement of ownership of each asset, but also its correct date-of-death value; the value that must be used in all valuations is the Fair Market Value.

The I.R.S. defines fair market value as:
"The fair market value is the price at which the property would change hands between a willing buyer and a willing seller, neither being under any compulsion to buy or sell and both having knowledge of relevant facts."

Estate assets may be sold by the executor to raise cash to pay bills or taxes or divide the proceeds among several devisees as soon as he gains the proper authority. He can also elect to hold the sale of assets during the administration of the estate and before final distribution, unless, the sale of the asset is prohibited by the will. In pricing of the assets, the executor is only controlled in setting of the minimum price by State statues which control the minimum price for both personal and real property.

By selling of the estate property during administration of the estate and before order of final distribution from the probate court, the executor can avoid direct involvement of all devisees in the negotiations. You can put your two cents in or be involved in the sale of assets only if it occurs after the final distribution.

But having said all that, your chances of purchasing the cars from your father's estate may be hampered not by the family bad blood, but by the state statute which places a duty on the executor not to Self-Deal. This means that the executor cannot sell the property to a friend or a family member but this may be cured if the duty not to self-deal is waived in the will,or if all interested parties approve before the sale, or if approved by the court with full knowledge of the relationship.

Hope it goes well for you.

fredrikklaw

 

[stan182]

Thanks, I think you're saying that she's under no obligation to offer first refusal to family (yes, the self-deal issue is waived by all family). In order to determine a fair value, does the court require written offers, or are verbal offers presented by the executor sufficient?

Much thanks,