Bank account of deceased person during probate

J

JimmyB99

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Just checking - where someone dies with a rental property which was in his own name and where the associated rent was paid into his bank account, presumably until probate is sorted, the rent must continue to be paid into this bank account? That is, whilst the bank account is "frozen", it can still receive the rental payments?
 
Thanks a million, Pinoy Adventure

Just for the avoidance of doubt - the execs need to set up a new account, i.e. the old account is completely frozen, as in, it can't even receive incoming payments (not to mention make payments out). Is this right?

Thanks for your help. Much appreciated.
 
The execs or solicitor dealing with the estate can set up the account.
As far as I’m aware once you give whichever bank the death cert the account will be frozen so it would be necessary too have an account of the estate set up so rent can continue too be paid without delay.
 
Thanks Pinoy,

That makes complete sense.

I'll get all this confirmed by the solicitor - just trying to think through various scenarios in advance.

The gas thing is that once you have one question answered, it tends to beg another! I wonder now, for example, whether this "estate account" can now both receive and make payments, e.g. in relation to receipts and outgoings related to an investment property!
 
Last question - promise!!

How is rental income taxed during administration period?

Who is liable for the rental profit?
And how is the rental profit calculated - is it income less appropriate expenses in the normal way?

THANKS!
 
The estate is liable for the income tax on rental profit

The estate has no personal tax credits but otherwise the standard calculation is used
 
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