Disputed probate

TamaraD

Hi
i lost my Mam 3 years ago and there is 3 other siblings beneficiaries to the will. All 4 of us are executors. One sibling has made things very difficult for the others including caveats on probate. This sibling will inherit 2 houses currently rented out. The other executors have received a debt collector letter for the rental income since Mam passed. The rent has been paid into the account of the estate to date. 

Question- is this sibling entitled to the rental income prior to probate? Surely the rental income can only be given once that person owns the 2 houses.

gwynlas

The rental income should be paid to the estate until such time as probate granted and estate distributed

Linton

Until the estate is distributed the rented-out houses belong to the estate and rental income must be paid into the estate.  It then forms part of the cash in the estate and is nothing to do with the houses.

No money should be distributed until after probate and after all debts have been paid.

The only circumstances I can see where the rent should be paid to the sibling is if he/she was a joint owner of the houses and so became the full owner when your Mam died.  But then the house would not form part of the estate.

Marcon

TamaraD said:

Hi
i lost my Mam 3 years ago and there is 3 other siblings beneficiaries to the will. All 4 of us are executors. One sibling has made things very difficult for the others including caveats on probate. This sibling will inherit 2 houses currently rented out. The other executors have received a debt collector letter for the rental income since Mam passed. The rent has been paid into the account of the estate to date. 

Question- is this sibling entitled to the rental income prior to probate? Surely the rental income can only be given once that person owns the 2 houses.

Try this link for something 'official': https://community.hmrc.gov.uk/customerforums/pt/c2e90264-1932-ee11-a81c-002248c79814

Shedman

Don't forget that, if you're not already aware, the estate will be liable for tax at 20% on the rental income less any allowable expenditure (and any interest on bank deposits, dividends, etc if applicable) from date of death until estate is distributed (or, in the case of the rental income, when the relevant properties are transferred to beneficiary).  You will also have to complete a R185 (estate income) form and give to each of the beneficiaries.

Keep_pedalling

Presumably this executor renounced their powers, an executor can’t put in a caveat or challenge a will they are administering. 

The debt collector has no power to collect anything from the estate and should be told to get lost. 

Is IHT an issue?