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Pinoy adventure

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Hi all

We are in the process of starting a personal probate application which will take some time too complete (no idea but thinking at least 6 months).

The estate is straight forward - couple of bank accounts and 1 mortgage free property.

My question is - is it legal too rent property out while we sort out the estate ?

One beneficiary of the will want too rent it from the other beneficiaries while probate is processed (below rental market value as they plan on buying it once probate is completed).

Any thoughts folks

Thanks
 
IANAL but I don't think there's normally any issue with renting out a property during probate but the current restrictions on residential lettings or more exactly their termination might have changed this?

More generally, I think you would be wise to get legal advice on your options here - for example if it's a family inheritance, a deed of family arrangement may be better, more tax-efficient and more efficient generally than selling the property to a beneficiary post-probate?
 
As with my answer about selling the property below market value to a beneficiary post probate, beware of renting below market value for exactly the same reasons.

Who is the executor? Is it you or another one or two of the beneficiaries? These questions are exclusively for the executor, as it is the executor's neck (and money) on the line if things are not managed legally and in accordance with the wishes set out in the will.

Just to clarify on the selling price of the property, if one of the four beneficiaries buys it, the price s/he pays is fair market value less 25% as s/he already owns a 25% interest in the property. Any tax due on the sale however will still be calculated using 100% of the fair market value.
 
mathepac said:
As with my answer about selling the property below market value to a beneficiary post probate, beware of renting below market value for exactly the same reasons.

Who is the executor? Is it you or another one or two of the beneficiaries? These questions are exclusively for the executor, as it is the executor's neck (and money) on the line if things are not managed legally and in accordance with the wishes set out in the will.

Just to clarify on the selling price of the property, if one of the four beneficiaries buys it, the price s/he pays is fair market value less 25% as s/he already owns a 25% interest in the property. Any tax due on the sale however will still be calculated using 100% of the fair market value.
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No I’m a beneficiary of the will.
Two other siblings are the executors.
There is no mention of renting property in the will.(the way the executors have worded there wishes is - they should be receiving some rent while probate is in process).

Yes correct on the last point.(there is absolutely no discount on the valuation)however my belief is something is kind of fishy as only on executor appointed there friend who is a estate agent/valuation person.

There is mistakes made on the valuation like it says double glazed windows throughout but that is not correct. It also says they have no prior connection too the person who appointed them and finally the red flag too me is they never charged for the valuation too be done either which makes me think what is going on.
 
One other concern I have is the contents of the property like wedding rings and high value items of jewellery.

They are not mentioned in the will.

Beneficiary’s believe they can just take these items from the estate and that they will keep them.

How can these items be secured and distributed fairly ?

Thanks
 
Pinoy adventure said:
It also says they have no prior connection too the person who appointed them
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Being a personal friend of the client would rarely if ever be regarded as information that would necessitate disclosure on a valuation or other document prepared for a client. People in general commission services from total strangers only when they have no choice but to do so. Almost always there is a preexisting direct or indirect relationship.

and finally the red flag too me is they never charged for the valuation too be done either which makes me think what is going on.
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I wouldn't class this as a red flag. There could be any of a number of genuine reasons why the valuer decided not to charge a fee.
 
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Pinoy adventure said:
they should be receiving some rent while probate is in process).
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No they can't. I would disabuse them of that notion asap.

Jewellery rarely has much monetary value but can be very important from a sentimental point of view.

The (admittedly old-fashioned) view used to be that the 'good' china, crystal, silver, etc would go to the eldest daughter of the family.
 
T McGibney said:
I wouldn't class this as a red flag. There could be any of a number of genuine reasons why the valuer decided not to charge a fee.
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A professional working for free,surely they have too make some money along the way otherwise they wouldn’t remain in business very long.

If they are a personal friend wouldn’t this Crete a conflict of interest ?
 
DannyBoyD said:
No they can't. I would disabuse them of that notion asap.





Why can’t they ?
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Why can’t they ?
But as long as it’s done above board with a rental agreement in place and taxes paid on any rental income would be fairly fair of course paid directly too the estates account rather directly too the two executives.
 
Pinoy adventure said:
A professional working for free,surely they have too make some money along the way otherwise they wouldn’t remain in business very long.
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As I said, there are a number of possible valid reasons why they didn't charge. It's a bit like a solicitor doing a will for free or for a token figure, or a bank offering no bank charges on particular accounts.
Pinoy adventure said:
If they are a personal friend wouldn’t this Crete a conflict of interest ?
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No. Why would it?
 
Pinoy adventure said:
Why can’t they ?
But as long as it’s done above board with a rental agreement in place and taxes paid on any rental income would be fairly fair of course paid directly too the estates account rather directly too the two executives.
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Your previous post suggested to me on reading it that the executors were looking to have the rent paid to them prior to probate & they can't do that.
 
I'm confused by the contradictions.

Any rent has to be paid to the estate, e.g. lodged to the bank account of the Late Jane Soap Deceased. It can't be distributed until Grant of Probate and Tax etc., has to be paid on the income.

The executors cannot have the rent paid to them personally.
 
Danny boy apologies for the confusion.
Ok thanks for the clarification on that.

(It seems all beneficiary’s apart from one want the rent paid too them directly)but this will be clarified shortly.
 
Pinoy adventure said:
One other concern I have is the contents of the property like wedding rings and high value items of jewellery.

They are not mentioned in the will.

Beneficiary’s believe they can just take these items from the estate and that they will keep them.

How can these items be secured and distributed fairly ?

Thanks
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You have to convert them into value or the price they worth. Add them all and then decide in terms on money so that they can be distributed evenly otherwise its very difficult to distribute them fairly.
 
Pinoy adventure said:
Danny boy apologies for the confusion.
Ok thanks for the clarification on that.

(It seems all beneficiary’s apart from one want the rent paid too them directly)but this will be clarified shortly.
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The rent can't be paid directly to beneficiaries either; until Probate is granted, all income is part of the estate.
 
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