NSW Pay Out Brother for Father's Property Before Asset Distribution?

[BrendanF]

My father recently passed away and left everything in his deceased estate to my brother and me 50/50. I am the executor and have applied for probate. I want to pay my brother out for the property but don't know if I can do that now or I have to wait the 6 months for the distribution of the assets. My brother lives in the home and needs the money to be able to move out and buy a new home, so he needs to be able to access the funds as soon as possible. So if I can buy him out now can he access those funds immediately or would he have to wait until the distribution of assets? Thank you in advance

 

[Sophea]

Hi Brendan F,

Since it is only the two of you, you can come to whatever arrangement you want, so long as you are both in agreement. The only risks you face in paying him out before distribution of the estate is him later changing his mind and trying to argue that the money you gave him was a gift and not a payout for the home (because you can't effect the actual transfer of title into your name until the estate is distributed). So you would have to have a Deed or something in writing stating the arrangement between you. However there is also a risk (albeit unlikely) that some unknown sibling or family member will make a last minute family provision claim on the estate and then you will need to split the house more than 2 ways. If you are prepared to take those risks, the private arrangements that you come to with your brother are up to you.