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  • FIRST POST
    • blinx
    • By blinx 15th May 18, 2:27 PM
    • 27Posts
    • 9Thanks
    blinx
    Renting out Deceased's property without Probate being carried out
    • #1
    • 15th May 18, 2:27 PM
    Renting out Deceased's property without Probate being carried out 15th May 18 at 2:27 PM
    First of all, apologies if this is not in the right forum/thread, (if so perhaps Admin could move it to the appropriate place).

    Anyway, my question is this: I know someone who is the Executor of a relativeís estate (the deceasedís only asset being a house). The Executor has been renting out the property for years and yet has not taken the Will Probate? Is this legal/right? Also are they suppose to pay tax on the rental income?
Page 1
    • TcpnT
    • By TcpnT 15th May 18, 2:38 PM
    • 129 Posts
    • 72 Thanks
    TcpnT
    • #2
    • 15th May 18, 2:38 PM
    • #2
    • 15th May 18, 2:38 PM
    Need a few more details here. The first question is was there a will and if so who was the house left to?

    Also was the house owned in the sole name of the deceased or jointly with someone else. If jointly was it as Joint Tenants or as Tenants in Common?
    • Tom99
    • By Tom99 15th May 18, 3:35 PM
    • 2,390 Posts
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    Tom99
    • #3
    • 15th May 18, 3:35 PM
    • #3
    • 15th May 18, 3:35 PM
    Assuming the deceased was the sole owner of the property the property is now owned by the estate of the deceased. The estate is a tax entity in its own right quite apart from the deceased, the executors or the beneficiaries.

    The rental income belongs to the deceased estate and since an estate does not have any income tax personal allowance it would all be taxed at 20% subject to any other revenue deductions allowable.

    The responsibility for dealing with the estates tax affairs lies with the executor.
    • Dox
    • By Dox 15th May 18, 4:35 PM
    • 744 Posts
    • 509 Thanks
    Dox
    • #4
    • 15th May 18, 4:35 PM
    • #4
    • 15th May 18, 4:35 PM
    First of all, apologies if this is not in the right forum/thread, (if so perhaps Admin could move it to the appropriate place).

    Anyway, my question is this: I know someone who is the Executor of a relativeís estate (the deceasedís only asset being a house). The Executor has been renting out the property for years and yet has not taken the Will Probate? Is this legal/right? Also are they suppose to pay tax on the rental income?
    Originally posted by blinx
    Why do you ask (could affect the amount of detail you need by way of a reply).
    • blinx
    • By blinx 16th May 18, 2:16 PM
    • 27 Posts
    • 9 Thanks
    blinx
    • #5
    • 16th May 18, 2:16 PM
    • #5
    • 16th May 18, 2:16 PM
    Thank you for replies. To answer queries.

    Yes there was a Will and it was left to a relative (Deceasedís sister) who is also the Executor. The Will was dated 1994 however and not brought to Probate, hence the question. The property was in the Deceasedís sole name and still is (property had no mortgage). I just wondered whether or not what she, the Executor, is doing is legal, someone told me that renting out a property without taking it to Probate is not how it should be done.
    • nom de plume
    • By nom de plume 16th May 18, 2:36 PM
    • 699 Posts
    • 647 Thanks
    nom de plume
    • #6
    • 16th May 18, 2:36 PM
    • #6
    • 16th May 18, 2:36 PM
    First of all, apologies if this is not in the right forum/thread, (if so perhaps Admin could move it to the appropriate place).

    Anyway, my question is this: I know someone who is the Executor of a relativeís estate (the deceasedís only asset being a house). The Executor has been renting out the property for years and yet has not taken the Will Probate? Is this legal/right? Also are they suppose to pay tax on the rental income?
    Originally posted by blinx
    Would the estate be liable for inheritance tax? If so then it definitely should have been dealt with.

    Rental income should most certainly be declared to HMRC.
    • blinx
    • By blinx 17th May 18, 8:50 PM
    • 27 Posts
    • 9 Thanks
    blinx
    • #7
    • 17th May 18, 8:50 PM
    • #7
    • 17th May 18, 8:50 PM
    No it fell below the inheritance tax threshold apparently.
    • Brynsam
    • By Brynsam 17th May 18, 9:00 PM
    • 1,279 Posts
    • 876 Thanks
    Brynsam
    • #8
    • 17th May 18, 9:00 PM
    • #8
    • 17th May 18, 9:00 PM
    Thank you for replies. To answer queries.

    Yes there was a Will and it was left to a relative (Deceasedís sister) who is also the Executor. The Will was dated 1994 however and not brought to Probate, hence the question. The property was in the Deceasedís sole name and still is (property had no mortgage). I just wondered whether or not what she, the Executor, is doing is legal, someone told me that renting out a property without taking it to Probate is not how it should be done.
    Originally posted by blinx
    Not really your concern, is it? Up to the executor, who takes the rap if she gets it wrong.
    • antrobus
    • By antrobus 17th May 18, 9:12 PM
    • 15,772 Posts
    • 22,442 Thanks
    antrobus
    • #9
    • 17th May 18, 9:12 PM
    • #9
    • 17th May 18, 9:12 PM
    Thank you for replies. To answer queries.

    Yes there was a Will and it was left to a relative (Deceased!!!8217;s sister) who is also the Executor. The Will was dated 1994 however and not brought to Probate, hence the question. The property was in the Deceased!!!8217;s sole name and still is (property had no mortgage). I just wondered whether or not what she, the Executor, is doing is legal, someone told me that renting out a property without taking it to Probate is not how it should be done.
    Originally posted by blinx
    Given that the executor and the beneficiary are the same person, I can't see there being a problem.

    I'm not sure why the estate has not gone to probate. If the deceased's only asset was the house it should be very straightforward. But I suspect it's your question about them paying tax that's the most relevant.

    I'd guess that the executor has not declared this income to HMRC. If you think so too, you can always shop 'em.
    https://www.gov.uk/government/organisations/hm-revenue-customs/contact/reporting-tax-evasion
    • getmore4less
    • By getmore4less 18th May 18, 12:58 AM
    • 32,402 Posts
    • 19,468 Thanks
    getmore4less
    Thank you for replies. To answer queries.

    Yes there was a Will and it was left to a relative (Deceasedís sister) who is also the Executor. The Will was dated 1994 however and not brought to Probate, hence the question. The property was in the Deceasedís sole name and still is (property had no mortgage). I just wondered whether or not what she, the Executor, is doing is legal, someone told me that renting out a property without taking it to Probate is not how it should be done.
    Originally posted by blinx
    Executors powers come from the will

    Executor can rent out a house without probate subject to no exclusion in the will.

    The only persons that would care about this would be any beneficiaries.

    HMRC have an interest where taxes are due.
    • Malthusian
    • By Malthusian 18th May 18, 10:17 AM
    • 4,336 Posts
    • 6,830 Thanks
    Malthusian
    Also are they suppose to pay tax on the rental income?
    Originally posted by blinx
    Only if their total income, after deducting the costs of the property, is above their Personal Allowance.

    Unless you are privy to full details of their finances I would leave well alone.
    • Tom99
    • By Tom99 18th May 18, 1:35 PM
    • 2,390 Posts
    • 1,612 Thanks
    Tom99
    Only if their total income, after deducting the costs of the property, is above their Personal Allowance.
    Originally posted by Malthusian

    The decease's estate does not have any personal allowance so if the property is still in the decease's name all the rent will be taxable.
    • getmore4less
    • By getmore4less 18th May 18, 6:43 PM
    • 32,402 Posts
    • 19,468 Thanks
    getmore4less
    The decease's estate does not have any personal allowance so if the property is still in the decease's name all the rent will be taxable.
    Originally posted by Tom99
    The income can be assigned to the beneficiary as their income.
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