Will specifies sale of property.

[riverrat60]

My father died some years ago and left property to my mother. Each of their
wills mirrored one another and specify in event of their death, property to be sold and proceeds split between siblings (2). Can we (siblings) sell to a grandchild and may we set the selling price or are we bound by some state law regarding this?

 

[dee_dub]

Did the clause say the property was to be sold if she died (which would be bizarre, because once she inherits it your father's will is no longer able to deal with it)

Or did it say (as wills often do) that the property was to be sold if she didn't survive your father for a certain period?

Has your mother died? And did she survive your father by the specified period?

 

[riverrat60]

She did survive my father and is still living, however in very poor health. Her will states the property is to be sold upon her death. Mom and Dad had wills made at the same time with each leaving the other the property and upon the death of surviving party, property was to be sold.

 

[dee_dub]

Then your mom inherited it when your father died, according to the terms of his will. And when she dies, according to the terms of her will, it should be sold.

The executor can sell the property to a grandchild. (If the children are executors, they can sell - but they do so in their capacity as executors, not in their personal capacity.) There is no law against that. However if they don't get fair market value, they leave themselves open to liability. The executor has to act in the best interest of the estate and selling at less than FMV is a breach of their duty.

 

[riverrat60]

"they leave themselves open to liability" - what kind of liability?

 

[dee_dub]

Beneficiaries coming forward after the fact and complaining because they got less then they think they were entitled to. If the property is worth $100K, and the executor sells it for $50K, they may be personally liable to disgruntled beneficiaries for the difference. They also might be in breach of some local laws about fraudulent conveyances, tax avoidance, or something similar but I don't know enough about Virgina law to say.

 

[riverrat60]

You have been most helpful. Thank you!