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NSW Paying Rent during Probate?

Discussion in 'Wills and Estate Planning Law Forum' started by patricia macvean, 6 January 2015.

  1. patricia macvean

    patricia macvean New Member

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    My mum recently died. I was her carer guardian. My 2 siblings now want to charge me rent while waiting for probate is this possible we are all 3 executors and recipients of the estate?
     
  2. Sophea

    Sophea Well-Known Member

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    Hi Patricia,

    It is the responsibilities of the executors to preserve the estate for the benefit of the beneficiaries. Therefore they can charge you rent on the house which belongs to the estate while waiting for probate. However a fair amount would be just that which covers the expenses of the running of the house - so that these are not drawn from the estate.

    If you don't have the cashflow to pay the rent now, perhaps you could negotiate that it is deducted from your inheritance once the estate is distributed.
     
    Sarah J likes this.
  3. Sarah J

    Sarah J Well-Known Member

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    Hi Patricia,

    I agree with what Sophea has written.

    The co-executors of your mother's estate have a fiduciary duty to act in the interests of the beneficiaries as a whole. Alternatively, if the house is left to a particular beneficiary, then the co-executors must act in the best interests of that beneficiary in relation to the house, but without substantially damaging the interests of other beneficiaries (e.g. in the situation where the estate cannot cover all expenses and costs and all gifts must be apportioned).

    As Sophea has mentioned, in order to protect the interests of the beneficiaries, the co-executors can charge whomever is living in the house a reasonable amount of rent in order to maintain/increase the value of the estate. If you wish to continue living in there, you can negotiate to pay this rent or have it set-off against your beneficial share of the house when probate is granted and the estate is administered.
     

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