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Who collects rent when a person has passed intestate?
Anonymous4 views3 answers
My uncle passed away with 90% interest in a multi-family home. He left no will and has a spouse abroad that has never visited the U.S. Can the 10% tenant in common collect the full rent if he is a co-signer on the loan? Is this ethical? Does he also become 100% owner immediately? By the way, the mortgage hasn't been paid in over 50 months. I have told the secondary owner to contact the bank and turn everything over if possible because I find it unethical. Any help is appreciated.
Someone needs to apply, file the petition to become administrator of is estate. This would allow someone to handle all of his estate affairs. The spouse may be the beneficiary (all or some) depending on the situation with children, but someone needs to be administrator first. If wife can't do it, hopefully she'll sign a renunciation (document declining to serve - not declining her inheritance) so that the next closest heir-at-law can serve. I would advise hiring an attorney - while this might not be the most difficult thing in the world you need some expertise. I also find it hard to believe a mortgage that is more than 4 years behind hasn't at least started into foreclosure. By the way, if the 90% is owned by uncle, as tenant in common, it goes to uncle's heirs at law if he died without a will - the 10% remains with the other tenant in common. Regarding the mortgage, you'd need to know more about it to determine who is on the hook exactly.
Assuming that a property manager had not been collecting previously (and would continue to do so) the proper person would be the court appointed estate representative. Until that person is appointed no one has the authority to collect estate assets. That does not mean the tenants get a bonus. If/when the estate representative is appointed the tenant would have to pay all back rent. Please note I do not practice in your state. I suggest you seek advise from a probate attorney within your state to confirm my advice. And if she/he says otherwise, follow their advice over mine.
I think the 10% owner may have standing to file a petition for administration seeking limited powers relating solely to the management of the real estate as there is clearly an identifiable interest.
