A writer who inherited six rental properties alongside their brother now faces legal and financial complications after the sibling failed to follow through on an informal agreement. The estate includes six rental flats and a main residence, all still registered under their parents’ names in the Land Registry. The main home has deteriorated, prompting a council tax demand for an empty property, while one of the flats requires a landlord license. Upcoming rental regulations will also require compliance work, but no progress has been made on these issues.
The writer and their brother decided to divide the benefits equally between them after their mother’s death in 2023. However, the relationship broke down, halting all communication. The writer, who never intended to oversee rental properties, now struggles to access their share of the estate’s value while facing potential legal and financial penalties from unaddressed maintenance, licensing, and tax obligations.
Legal Responsibilities Override Private Agreements
As joint executors, both siblings remain jointly responsible for administering the estate and protecting its assets until the administration has been completed. Collyer Bristow, the law firm advising on this case, states that unresolved issues-such as property disrepair, missing licensing, and unrecorded rental income-could reduce the estate’s value and expose executors to liability claims. A formal arrangement between executors does not eliminate their shared duty to protect assets and complete administration.
How to force an unresponsive executor to act
The brother’s refusal to act cannot block progress indefinitely, but forcing action requires structured steps. The firm recommends sending a formal letter outlining unresolved issues, including property conditions, rental records, and plans for marketing and sales, with a deadline for response. If urgent repairs or compliance work are needed, the writer may need to arrange them independently while documenting the brother’s inaction.
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If the brother remains unresponsive, court intervention becomes necessary. While property sale orders exist, a more effective approach may be petitioning for his removal as executor. Courts prioritize resolving estate administration without delay, and if one executor’s inaction stalls the process, replacement is likely. An application of this nature can be expensive, so it is generally sensible to make every reasonable effort to resolve matters through correspondence first.
The writer’s understanding of the inheritance tax situation is not quite right. HMRC will not automatically take 40 per cent of any increase in value when a property is sold. If a property sells for less than its probate value, there may be reliefs available which can reduce the inheritance tax payable, resulting in a refund. Given the number of properties involved, obtaining specialist tax advice before any sales take place would be sensible.
Legal risks from unlicensed flats and missing records
One flat requires a landlord license. Electrical safety certificates for all six flats are also missing, adding to the administrative burden. Without action, the estate’s liabilities could grow while the writer’s access to their share remains blocked.
Rental income from the flats has gone unrecorded since the mother’s death in 2023, despite the properties remaining occupied. Executors must document all income and expenditure as part of estate administration, and unaccounted funds could later be challenged by HMRC or creditors. The brother has not provided statements or receipts, leaving the writer unable to verify whether the income offset estate liabilities or was distributed as agreed. Without clear records, the previously informal equal division of benefits could become contested.
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A council tax demand on the main residence—now classified as empty—adds urgency to the situation. Local authorities may impose higher rates if disrepair continues, and the estate could face additional charges for unpaid arrears. While the writer did not inherit the residence, both siblings remain liable for any financial penalties arising from the estate’s inaction. If the property’s value declines further due to neglect, it may reduce the overall inheritance available for distribution, directly affecting the writer’s share.
Correcting inheritance tax myths before selling properties
HMRC clarifies that while the estate has already paid inheritance tax, capital gains tax may apply if properties sell for more than their 2023 probate valuation. The writer’s assumption, that HMRC would claim 40% of post-death increases, is incorrect. Instead, capital gains tax applies to the profit made between the date of death and the sale, using the market value at death as the acquisition cost. If a property sells for less than its probate value, the estate may qualify for loss relief, potentially triggering a partial refund of inheritance tax already paid. However, these calculations require precise valuation and tax planning, making specialist advice essential before listing properties for sale.
The timeframe for estate administration depends on complexity, with simpler cases closing in six to 12 months. However, estates with multiple properties, outstanding liabilities, or disputes can take years. Courts may intervene if administration stalls, particularly where assets are at risk. Collyer Bristow advises that documenting all attempts to engage, including formal correspondence, strengthens any future legal case to compel action or seek executor removal. Without resolution, the estate’s delays could escalate, leaving both siblings exposed to financial and legal risks.
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