Estate & Probate · For executors, trustees and heirs
Can an Executor or Trustee Buy the House, or Sell It to Family?
The short answer
Often yes, but it is the clearest conflict of interest an executor or trustee can have, so it needs protection. Get an independent appraisal everyone relies on, disclose the terms to every heir, and get either the written agreement of all the heirs or a court order approving the sale. For a trust, Washington law lets an affected beneficiary undo a sale to the trustee or the trustee's close family unless the trust allows it, a court or binding agreement approves it, or the beneficiary consents. Often the simpler route is for the heir who wants the house to take it as part of their share and pay the others the difference.
Why it needs extra care
An executor (in Washington, the personal representative) or a trustee owes every heir a duty to act in good faith and in their interest. When that same person is the buyer, they are on both sides of the deal: their job is to get the best price for the estate, and their interest is to pay as little as possible. A family member as buyer raises the same question.
Washington's probate statutes do not simply forbid an executor from buying the estate's house. But if the price or the process was unfair, the other heirs can ask the court to act, and the court can award damages or remove the executor. A sale to a trustee or a trustee's close family can be undone outright. The steps below are what keep a family sale from being challenged later.
Four steps that protect the sale
1. An independent appraisal. Not a broker's opinion arranged by the buyer, but a written appraisal by a licensed appraiser that every heir sees before anyone agrees to a price. Settle in advance the date the value is as of, and whether repairs or selling costs the buyer avoids are shared.
2. Full disclosure. Every heir gets the appraisal, the proposed price and every term: who pays closing costs, the closing date, any credit for repairs, and whether the buyer will live in the house or resell it.
3. Written agreement or a court order. The strongest protection is the signed agreement of all the heirs. Washington's trust and estate dispute law (TEDRA) lets the parties sign a binding written agreement that settles a matter like this, and if not every heir will sign, the executor or trustee can ask the court to approve the sale instead.
4. Terms no better than an outside buyer would get. A family discount is a gift from the other heirs, so it needs their clear agreement. Otherwise the price and terms should match the market.
Estate or trust: the rules differ
In a probate estate with nonintervention powers, which most Washington estates have, the personal representative can sign the sale without a court order. That is exactly why the heirs' written agreement matters: no judge reviews the price unless someone asks.
In an estate without nonintervention powers, every sale goes through the court and must be confirmed, and a private sale generally must bring at least 90 percent of the appraised value.
For a house held in a trust, Washington's trust law is explicit: a sale to the trustee, or one affected by a conflict of interest such as a sale to the trustee's spouse, children, siblings or parents, can be undone by an affected beneficiary. It stands if the trust authorizes it, if a court or a binding written agreement approves it, or if the beneficiary consents.
Example: the executor who wants to keep Mom's house
Ana is executor of her mother's estate, which the will divides equally among Ana and her two sisters. The house is the main asset and the sisters want cash. Ana orders an independent appraisal and sends it to both sisters with a proposal: she will take the house as part of her share and pay each sister a third of its net value (the appraised value minus the mortgage), under a written agreement all three sign before anything is recorded.
If one sister will not sign, Ana does not go ahead on her own authority. She asks the court to approve the arrangement, or the house is sold on the open market and the proceeds divided.
Checklist
- Order an independent appraisal from a licensed appraiser, and share it with every heir before discussing price.
- Write down the proposed price and every term, and send them to every heir.
- Decide with the estate's attorney whether this is a sale from the estate or a distribution of the house as part of an heir's share.
- Get the signed agreement of all the heirs, or ask the court to approve the sale.
- Keep the appraisal, the agreement and all correspondence with the estate's records.
Related guides
General information, not legal advice. A sale by an executor or trustee to themselves or family is worth having the estate's attorney handle. Real Property Planning does not refer clients to attorneys.
Frequently Asked Questions
Executors, Trustees and Family Sales: Common Questions
Your next questions
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What a date-of-death value is for, and when an appraisal is the right tool.
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Personal representatives, letters testamentary, nonintervention powers and when court approval is needed.
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Property taxes, exemptions and deadlines after a death in Washington.