Renting decessed property pre probate

E

ExecExec

Registered User
Messages
13
Hi,

I am applying for probate shortly. There is one property which we would like to rent in the short term while we await probate.

The reasons are

1. We need to generate income to pay the bills for maintenance.
2. Bank are chasing for mortgage to be paid. (Jan 2018 was last mortgage payment).
3. Generate additional income for the 3 beneficiaries as money is very tight.

We have an executors AC with which is a "money in only" AC while we wait for grant of probate. If the rent went into the executors account we would not be able to access it to address the above.

Is this allowed and what are the revenue implications as the rent would not be going into the executors account for the above reasons.

Many thanks
 
first I am assuming the person hold g the mortgage has died so then the bank will want to I invoke a sale to close the mortgage. As regards renting the property you can do it but not having complete the Probate you are not the owner and so the renter might abuse you. You also will have to pay Tax on the earnings
 
Notify mortgage holder of death and that you are exec. They will hold pending sale of property or redemption from life assurance.

All rental proceeds go to the estate and are distributed per the will when probate completed.

You will have to pay taxes and get clearance from Revenue that all relevant taxes are paid before you distribute.

You will be responsible for all repairs and replacement of white goods while the property is rented.

If it was me, I think it's more trouble than its worth.
 
Thanks for the replies. The bank are a aware etc.

I just wanted to check that it wasn't illegal to rent it out pre-probate.
 
Do you have to have an executors bank account. I didn't. It wasn't necessary and the probate office never told me I had to do so. We looked into renting out the property as an empty property causes costs and damage via neglect. A sibling moved in and solved that. I paid all costs using my own money on either side of that.

I don't see anything wrong with that the OP is proposing. Being an executor is a thankless onerous task and they shouldn't have to be out of pocket. But as others have pointed out. Being a landlord can be difficult.

Why is there no life insurance on the mortgage.

Also are the properties going to be sold or what? It's six months + since the mortgage was paid. If being sold I'd put on the market for a quick sale pending probate.
 
Thanks Bronte,

Yes there is an Exec Bank AC. However we will to be able to access the funds, pending probate. Tax wise it will be more straight forward to have proceeds from rent against estate rather than individuals (beneficiaries).

The property will have to be sold as there is a significant mortgage. The deceased did not have life cover on mortgage as it is not a requirement over a certain age, living alone and no dependents. We thought it best to put on market when probate is through, so as not to alienate some potential buyers at the higher end of the market.
 
What is the delay in the probate coming thru? Is it a backlog in the Dublin probate office or did the documentation only get submitted recently? How long have you been told before it comes through. I think you should hire an auctioner now and get the ball rolling. Discuss the situation and take his advice.

Odd to have a significant mortgage if later in life. What age do you mine my asking (just knock off a year of two so you don't identify anybody)

Have you talked to the bank - they are generally pretty good when it's a case of a death, in my experience.

It's better to have an empty house than a sitting tenant as regards selling. So think about that.

Think of other solutions. Can the beneficiaries not help cash wise? Each put in x amount. But I'd let the bank wait. They can do nothing.
 
not so odd to not have a mortgage protection policy if you don't want it. I dealt with such a case where the deceased decided that the money they had to live on now was more needed now and if they did pass away the bank would get their money from the sale of the house.
 
You must log in or register to reply here.
Back
Top