QUESTION
Can a non family member Personal Representative (by courts) underbid estate sale price and sell to her family member?
Asked on Dec 17th, 2013 on Estate Planning - Nebraska
13 ANSWERS
Under bidding is not allowed and it is a conflict of interest to sell the property in a non-arms length transaction to a relative.? Go to court with the evidence to get the sale revoked or damages paid in the form of the higher bid and the representative removed and no payment given them for their work.
Answered on Dec 20th, 2013 at 10:11 PM
Edwin K. Niles
Sounds as if there is a conflict of interest.
Answered on Dec 20th, 2013 at 10:10 PM
That sounds like a conflict of interest.
Answered on Dec 19th, 2013 at 1:04 PM
3 Awards
Generally not. Was there open bidding in court? Did the court authorize it. You should have an attorney review the specifics. This information is only intended to give general information in response to an inquiry. It does not establish an attorney client relationship. This response is only based upon the limited facts presented and is merely intended to assist you in determining if you should contact an attorney to provide you with legal advice.
Answered on Dec 19th, 2013 at 1:04 PM
Business Planning Attorney serving Livonia, MI
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Frederick & Frederick Attorneys at Law
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Can it happen? Yes. Can it be challenged? Yes. You may want to petition the court to allow any interested party to allow you to purchase the property for $1 more than the price agreed to by the PR. That can remove the incentive to cheat. An attorney might also be a wise investment, at this point.
Answered on Dec 19th, 2013 at 12:48 PM
Corporate/Business Attorney serving Beachwood, OH
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Christine Sabio Socrates Attorney at Law
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No. That would a violation of the representative's fiduciary duty and could be grounds for removal. The representative cannot act it their own interest or unjustly benefit in any way from the estate. He/she should not sell the home below fair market value unless there are circumstances that prevent the home from selling at that value.
Answered on Dec 19th, 2013 at 12:47 PM
Business Law Attorney serving Bingham Farms, MI
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James T. Weiner, P.C.
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This would be a violation of the fiduciary duty that the PR has to the beneficiaries to maximize the sale price so no. contact an attorney.
Answered on Dec 19th, 2013 at 12:46 PM
Probate Attorney serving Newport, OR
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Minor, Bandonis & Haggerty P.C.
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No. Object to the sale. That is a breach of her duty as PR.
Answered on Dec 19th, 2013 at 12:45 PM
Commercial Contracts Attorney serving Boise, ID
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Peters Law, PLLC
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It sounds like a breach of fiduciary duty to the other heirs. Somebody should file an objection and possibly a motion to remove her as personal representative.
Answered on Dec 19th, 2013 at 11:06 AM
Trusts Attorney serving Sacramento, CA
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Law Office of Victor Waid
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No, as that amounts to be self dealing in assets that belong to the estate in other words a breach of fiduciary duty owed to the estate. The estate representative cannot accept less than fair market value. And court approval of the sale will be required. Suggest you seek the counsel of a probate lawyer.
Answered on Dec 19th, 2013 at 11:05 AM
2 Awards
If the court accepts the bid.
Answered on Dec 18th, 2013 at 9:37 AM
Commercial Attorney serving Chicago, IL
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Ashcraft & Ashcraft, Ltd.
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The Representative of the estate has a fiduciary duty of fidelity and loyalty to the estate. This means the representative must act in the best interest of the estate and any self-dealing would undergo heightened scrutiny. As an heir you have an opportunity to object to a transaction. You also have an opportunity to convert the administration of the estate from independent administration to supervised administration which would require the representative to seek court approval of the sale.
Answered on Dec 18th, 2013 at 9:22 AM
A Personal Representative has a legal obligation to settle an estate in the manner that best reflects the wishes of the deceased and provides the maximum benefit for the heirs. It doesn't matter whether the PR is a family member or not. If there were willing buyers at the sale price and the PR deliberately sells the item at a lower price to a person with whom the PR has a personal relationship, the PR is ignoring his/her legal duty.
Answered on Dec 18th, 2013 at 9:07 AM