DEALING WITH ESTATE PROPERTY

One aspect of administering a deceased estate is to finalise and distribute any real estate owned by the deceased. In some cases, the Will directs the Executor to deal with the property in a specific way, however generally the Will is not so specific. In cases where the Will is not specific with regards to the real estate, there are generally three options available.

OPTION 1 - SELL THE PROPERTY

The property can be sold on the open market by private treaty or auction. To enable this, the property needs to be transferred into the name of the Executor or Administrator, and they will sell the property on behalf of the Estate. Once the property is sold, the proceeds of sale will form part of the Estate and those funds are available for distribution to the beneficiaries of the Estate.

OPTION 2 - TRANSFER THE PROPERTY

If the beneficiaries wish to keep the property, the Executor or Administrator can transfer the property to the beneficiaries of the Estate. There is nominal stamp duty payable on this transfer and once the property has been transferred, the beneficiaries will legally own the property.

OPTION 3 - PROPERTY TO BE PURCHASED BY A BENEFICIARY

There may be a beneficiary who wishes to purchase the property from the other beneficiaries of the Estate. If all beneficiaries agree, the property can be sold to that person for an agreed price and the remainder of the beneficiaries will receive their allocated share of the funds.