Whenever you are working with an estate planning lawyer, it’s important to make sure you cover all of the assets that you have in your name to avoid confusion later on down the road. One of the things for executors to consider when they are dealing with the probate process is rental property. Rental property can cause confusion and delays in the probate process, especially, if the deceased didn’t square things away with their inheritance attorney at a prior date. That’s why we’ve put together the following list which details a few things to consider if rental property is involved in the probate process.
The title of the property will play an important role in the probate process. If the decedent held the title of the property with tenant-in-common, the decedent’s interest in the property will typically need to go through the probate process. Rental properties with titles that are joint tenant with right of survivorship will go to the surviving joint holder and not be subject to probate. Whatever the case is for the rental property in question, you will need to make sure that you understand the status of the property title before you move forward.
Another important consideration that people should make with their estate planning lawyer is related to rental income. If a rental property is generating income, the executor might have to file special tax forms and keep track of the rental income. This is an added complexity that executors will have to get squared away if the deceased did indeed have rental property.
The final important consideration to make with regards to rental property and the probate process is figuring out where the property is located. This is an absolutely crucial step because you will need to adhere to state and local laws. Each state will have a separate set of guidelines and regulations for the executor to follow so make sure you have a great inheritance attorney you are working with if you are looking for legal help during the probate process.
We hope this article has helped you learn some important concepts and considerations to make when dealing with rental property as the executor of someone’s estate.