Do All Heirs Have to Agree to Sell Property They Inherited?

If a loved one has just passed away and you are standing to inherit from their trust or estate, you are likely already feeling overwhelmed by the emotions of this event. However, when you inherit property jointly with other beneficiaries, like a house, this can add another wrinkle that can prevent you from moving on and compound an already stressful situation. Many people come to us asking, Do all heirs have to agree to sell property? The answer depends on your situation.

At Gokal Law Group, we have empowered countless beneficiaries to safeguard and receive their inheritance while helping them navigate this emotional chapter to reach a place of closure. Here’s when heirs do and don’t have to agree to sell jointly inherited property.

Do All Heirs Have to Agree to Sell Property They Inherited?

Whether you have inherited a property through a trust or will, the answer is the same for the question, Do all heirs have to agree to sell property? It depends. If heirs have joint ownership, then yes. If it is property an executor or trustee is in charge of, then no. Let’s get into what to know if an executor or trustee is in charge.

The executor or trustee can sell the property without approval from all beneficiaries as long as they are selling it in the best interest of the beneficiaries and the trust and at market value. This decision depends on several factors, including the debt the deceased person had.

If the deceased person’s debt when they passed away exceeds the assets available in the estate or trust, the property can be sold to pay off this debt, regardless of whether or not heirs agree. Even if you object to the sale in these situations, they can sell the property.

The law does not require all beneficiaries to sign off on these sales. Still, if you suspect that the trustee is not selling property in the best interest of the trust or all beneficiaries, or if you feel they are personally benefiting from the sale, contacting an attorney is crucial.

A lawyer will review the trust or will document and leverage their resources, such as forensic accountants and real estate professionals, to determine if the trustee is selling the property at market value and not benefiting from the sale in any way. 

If they are not doing their job and benefiting from the sale in any way, litigation will likely follow to recover losses and damages and secure your inheritance. Now,  let’s get into when heirs do have to agree to sell the property. 

Related Article: California Probate Law: Selling Property Without Beneficiary Consent

When Do All Heirs Have to Agree to Sell Property?

Under some circumstances, heirs do need to agree. Most commonly, this is required when they share joint ownership, meaning the property is not held in a trust. Sometimes, in these situations, beneficiaries cannot agree on whether or not to sell the property. 

No heir has the right to sell jointly-owned property without the approval of the other heirs. For example, imagine four siblings who inherited the family home. 

In this hypothetical scenario, one sibling wants to keep the house while three of the siblings would prefer to sell the property to divide assets more easily and avoid the time and labor investment that would be required to turn it into a rental property.

In this situation, you could start by exploring alternative dispute resolution to find a middle ground. Maybe the siblings need a mediator to reach a more amicable resolution that’s fair for everyone, or maybe the sibling who wants to keep the property needs to buy out the other siblings’ shares in the property. 

Filing a partition action in these situations is also a tool if you have no other option, which allows you to petition the court to relinquish your rights to ownership in exchange for cashing out your stake in the property (i.e. what you stand to inherit by selling it.) 

“These situations are often complicated because emotions run so high. Not only are you dealing with the loss of a loved one, but the sentimental value attached to inherited property can make people react unpredictably. Whether you need to force a sale with a partition action or undergo mediation to maintain your relationship with your siblings, it is important to navigate these situations tactfully, and an experienced and objective lawyer can help you do so.”

Harry Wallace, Partner, Gokal Law Group

Related Article: Taking Siblings to Court: Can Siblings Force the Sale of Inherited Property?

Do You Need More Information About Your Beneficiary Rights? Contact Us to Learn More and Enforce Them!

So, do all heirs have to agree to sell property? It depends, but obtaining premier legal counsel should always be the first step in these situations. Whether you suspect a trustee is selling property with ulterior motives or need to seek alternative methods of resolving such conflicts with your siblings, working with an attorney is crucial. Only a seasoned trust litigation lawyer will have the expertise and experience to advise you of your options and ensure you can achieve the best possible outcome.

Gokal Law Group’s attorneys can address any concerns and answer any questions beneficiaries like you may have to clarify your beneficiary rights. Visit our Contact Page to schedule a consultation. 

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