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Thread: Rent from a Deceased Estate

  1. #1
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    Rent from a Deceased Estate

    Hi All,

    I hope this is in the right place,

    My father recently passed away, well over a month ago, and he had two properties that he was renting out at the time.

    Sanlam is the administrators of his estate and we are just waiting for en Executor to be appointed, but my questions come into play with the tenants.

    May rent was paid into my late fathers account as that is what the tenants, now we have opened up a business account for the properties so we can mange the funds and pay all the utilities.
    One tenant is moving out now as there was some problems that was never fixed and we where unaware of it but we fixing it this week.I dont want the one property to sit with out a tenant as we will still have to pay levies and rate and taxes and it just money that we loosing, and I am getting conflicted information.
    Does the rental money have to go to Sanlam as part of the estate? I see they take 6% of all rental income during the estate.
    Can only the executor sign a new lease?

    We are fixing up the properties with our own money now and looking for a new tenant for the one property currently. It is low income property but its a start to build on things.

    I really dont see why it cant go into the account that the beneficiaries have opened and then we can use it to pay levies and electricity with out Sanlam taking their share. The will manage the rest of the estate but can the funds go into the that account?

    We wont be selling the properties now as its not really a sellers market but maybe in 6 months to a year we will sell and then buy other properties and keep the business growing.

  2. #2
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    The properties are in the estate and so the estate must pay for the costs.
    At this stage the income also comes to the estate.

    The administrator has their fees
    You are possibly free to change the administrator, and could negotiate. You could negotiate lower or flat fees etc.
    The executor has a say in terms of how the estate is run and the use of assets etc. Their job is to step into the shoes of the deceased. So imagine if the executor could rent it to you for R 100 (just saying)
    Anthony Sterne
    DISCLAIMER The above is merely a comment in discussion form and an open public arena. It does not constitute a legal opinion or professional advice in any manner or form.

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