When someone dies and leaves their property to an heir or heirs, the process of claiming this property and settling the estate is known as probate. But what happens if the property in question is a tenanted rental property? Or if the heir wants to rent it out before the estate is settled?
This article will answer all those questions and more. Keep reading to find out everything you need to know about probate rental properties in Ohio.
While doing your research and familiarizing yourself with probate rent laws is useful, speaking with a probate lawyer will be invaluable. With the help of a probate lawyer, like those at Linn Legal, you can receive the support you need to manage your new property and settle your loved one’s estate.
Can a Probate House Be Rented Out?
If you have been left real estate by someone who recently passed away, you might be asking: Can you rent a house in probate? The short answer is, technically, yes. The long answer is yes, depending on several important factors.
In Ohio, the probate process for renting a house can be lengthy, depending on factors like the property’s title, location, and designated managing authority. Let’s explore those factors more closely.
Property Title
How a property is titled will play a big role in determining whether you can rent it in probate.
If the property was held in a trust, the trustees have full authority over the building and decide what to do with it. They also do not need to go through the probate court system.
If the deceased had sole ownership of the property, you, as the inheritor and executor, will need to go through probate to claim it.
If the deceased co-owned the property, it is important to determine if it was co-owned by a tenant. If this is the case, you need to clarify if the tenant has survivorship rights, which will entitle them to the property. Co-ownership of a property can be tricky. This is why you should consider contacting a probate lawyer, like those at LinnLegal, for help.
Property Location
Different states have different laws. This means that, while you may be living in Ohio, if the property you have inherited and want to rent is outside the state, you will likely have to go through an auxiliary probate process. Many states have restrictions around what an out-of-state executor can and cannot do.
If you are dealing with an out-of-state probate property, you should consider speaking with a probate lawyer. They will be able to advise you on the proper course of action in order to rent your new house. Book a consultation with one of LinnLegal’s lawyers today.
Property’s Designated Managing Authority
Typically, the beneficiary is the designated managing authority for a property in probate. If, however, no one has taken on managing the property, the executor or administrator of the will can apply to do so. This is usually done in the best interest of the heirs since the property needs to be maintained. If the managing authority is not interested in renting the property during probate, then no one, not even the beneficiary, can rent it out until the estate is settled and out of probate court.
Steps to Renting Out a Probate House
If you are set to inherit a property that you’d like to rent out, there are a few things you will want to do beforehand. First, you should consider speaking with a probate attorney. An attorney will advise you on how to best follow Ohio’s probate laws. Linn Legal can help with this. Contact us today to speak with one of our attorneys.
While renting out a probate house can be complex, there are a few key steps you will likely have to follow. Keep in mind that these steps occur after the will and its executor(s) have been established. And speak with a lawyer before taking any legal action.
- Figure out which probate court has jurisdiction over the decedent’s estate and, thus, your future property.
- File the necessary forms, which will likely include an Application for Probate. At this time, you will need to submit the certified Death Certificate.
- Inform all named beneficiaries of the situation. You can do so by providing them with a Notice of Probate, which simply informs them that the process of estate settlement has begun.
- The court must confirm the validity of the will. Like in the movies, this is the step where a disgruntled heir may contest the will.
- The court will appoint someone as authority to oversee the settlement of the will. This is usually whomever the deceased named as executor. If, however, the deceased did not select an executor, the court will appoint someone. They are called estate administrators. The executor or estate administrator is now in control of the rental property until the estate is settled.
- At this point, an heir can file to take over as executor or estate administrator. If you have been willed a rental property but are not the executor, a probate lawyer will be able to advise you on whether this is something you should consider.
As you can see, the probate court system can be confusing and time-consuming, but it doesn’t have to be. An experienced probate lawyer can be invaluable in providing you with sound legal advice and guidance during an otherwise tumultuous time. Speak with one of LinnLegal’s probate attorneys now to learn all of your options.
Common Challenges Associated with Probate Properties
There are a few common challenges that arise when dealing with a probate property. Aside from the often time-consuming legal process that can ensue, probate properties require great attention, including the physical maintenance of the property itself. Below are a few other challenges that are associated with probate properties.
- Expenses. The legal process of settling a property with your county’s probate court can be costly. Legal fees, court fees, executor fees, and appraisal fees are just a few of the expenses you may be burdened with.
- Diligent Account Management. If the property you will inherit is already a rental property, it is important that any rental income continues to go into the estate. It is paramount that, until the estate is closed, you keep all finances separate. A probate lawyer can help you with this.
- Tax Implications. An estate may be subject to various taxes, including inheritance, estate, income, and more. These can impact the overall value of the estate.
- Communication. If you are the executor of the will, you will likely be required to contact many people, including the courts, all the relevant family members (beneficiaries), and possibly lawyers. If the property already has tenants, you should keep them abreast of the situation as well. While this is more out of courtesy and kindness, it can also serve you. If you change your mind and decide to sell the place, tenants who have been treated with respect and honesty will hopefully leave the house in good condition.
- Disputes. Many families experience conflict, both interpersonal and legal, during the settlement of an estate. Some may want to contest the will or the executor’s decision. An experienced probate lawyer can actually help mitigate conflict.
If you are considering renting a property in probate, speaking with a qualified probate lawyer can give you the guidance you need to do so. Linn Legal is here to help. Book a consultation with one of our attorneys today.
