Renting out a property before probate?

baby_boomer

Is it possible to rent out a property before probate if the executors are also the same people who will inherit the property in the will?
And if it is possible, does it potentially create more hassle, e.g. tax complications, than it is worth for a couple of months' rent?

00ec25

yes and yes
see here:
https://forums.moneysavingexpert.com/discussion/5877402/dad-died-tenanted-property-in-his-estate&page=2


and particularly post #33 re tax

PasturesNew

The bottom line in all these cases is whether anybody's being left out of the loop, whether somebody's trying to pull a fast one, whether somebody's doing things others wouldn't agree to.

If you're the only ones affected and all want to do it, then you can go ahead.

The problem only comes when there are problems/fights over the whole estate and what should be done ultimately.

If you're all happy and all want that, then just do it.

Probate/law etc is there to protect people from bullies and thieves and fighting over the Will etc. It's just a paperwork exercise if you're a normal, well adjusted family, all in agreement with how to proceed.

G_M

The Executors have considerable flexibility over how to administer the Estate. They have duties to protect the inheritance of the Beneficiaries of course, and that means a 'risky' investment with the assets could land them in trouble if, for example, the stock market, or property market, crashed and the assets disappeared or were depleted.


But there would be an equal argument that they have a duty to make the assets work (wisely) rather than sit there in a current account losing value. Or in this case, have a property sit there losing money through insurance, council tax etc - so letting it could be seen as a sensible decision.


But as PasturesNew suggests, it also depends on the longer term plan, and the Beneficiaries involved.


If the ultimate intention was to sell and distribute the cash, then letting would be unwise and indeed possible a failure to act as a responsible Executor, but if leting is the ultimate intention of all the Beneficiaries, then...... fine.

lisyloo

And if it is possible, does it potentially create more hassle, e.g. tax complications, than it is worth for a couple of months' rent?

I would say yes.


The contracts, insurance, safety checks, inventory, cleaning, accounts etc. are a lot of hassle.
There is the risk the person won't want to leave and you have to evict.
Some landlord friends of mine had to spent a lot of money getting rid of fleas and evicting a tenant.
That's worse case of course and most of the time doesn't happen, but there ARE risks, unless you know the tenant well. Even if you know the tenant well, if they fall on hard times they will be advice not to make themselves intentionally homesless i.e. force you to evict them,


Most tenancies work out fine, but you need to decide whether it's worth it.

AnotherJoe

baby_boomer wrote: »

Is it possible to rent out a property before probate if the executors are also the same people who will inherit the property in the will?
And if it is possible, does it potentially create more hassle, e.g. tax complications, than it is worth for a couple of months' rent?

You would be barking to do it for a couple of months rent. The only only scenario that would make sense would be, you intended to rent long term after probate.

baby_boomer

Many thanks for all your replies. We are the only beneficiaries, we are indeed a "normal well adjusted family" (at least in the sense that we don't fight about money! ;-) ) and we do intend to rent long term. That being the case we may go ahead as the points made above were what I "thought" was the position - but didn't know for sure. As usual MSE does a great job with pointing people in the right direction.

Thrugelmir

Are you expecting a considerable delay before probate is granted?

baby_boomer

No. I have just retired so am on top of the paperwork.

baby_boomer

No reason that probate should not be granted in October at the latest.