Deceased Estate and renting

Just new here, and have never had any involvement with investment properties.

My father has recently passed away and I am the sole benificiary to the estate and the executor.

He had a property worth about $330,000 that I would like to rent out. but there are a few issues.

In his will he has stipulated that my mother (his ex wife) has use of the property until she re marries or dies, at the moment she lives with me but may consider moving into the property in the future, 12 months down the track, however in the meantime, I can't afford to keep it with out renting it out.

Is the estate able to rent it out pending my mother possibly moving into it, the will is worded as she has the use of the property, does use mean that she can rent it out. What are the tax implications?

Another issue is that to may the property livable it needs new carpet, paint, a new stove, a bit of electrical and plumbing work done, if I was to get this done before renting it out are those costs a deduction. Should I wait until I have a tennant to get this stuff done?

As I said I am new to all of this any advice appreciated.
 
Heh ... I spent some of the weekend poking around in a similar house. Empty, still has bills coming in, the person who owns it can't live in it, and all the bills for EVERYTHING have to come out of one single aged pension until the paperwork clears and someone can sell the house. The decor in the house is severely dated too.

Cry poor to your mother, you AND your mother move into it, and assuming you own the house you live in now, you rent that out instead?

And see a lawyer ... chances are you can do anything you like to the house IF your mother agrees in writing, but then if she changes her mind you might find you need a clause in the lease where you can kick the tenant out on X notice for the use of your mother if she wants it. You might also find that she's allowed to rent it out and you're not but she might agree to give you housekeeping money to cover the costs of the place. So yeah, lawyer.
 
Just new here, and have never had any involvement with investment properties.

My father has recently passed away and I am the sole benificiary to the estate and the executor.

He had a property worth about $330,000 that I would like to rent out. but there are a few issues.

In his will he has stipulated that my mother (his ex wife) has use of the property until she re marries or dies, at the moment she lives with me but may consider moving into the property in the future, 12 months down the track, however in the meantime, I can't afford to keep it with out renting it out.

Is the estate able to rent it out pending my mother possibly moving into it, the will is worded as she has the use of the property, does use mean that she can rent it out. What are the tax implications?

Another issue is that to may the property livable it needs new carpet, paint, a new stove, a bit of electrical and plumbing work done, if I was to get this done before renting it out are those costs a deduction. Should I wait until I have a tennant to get this stuff done?

As I said I am new to all of this any advice appreciated.


I'm assuming your dad lived in the property before he died. As that is the case any repairs done before you rent it out will not be deducatable. (but added to the cost base). So repairs should be done when a tenant is settled in the property. Also note it's possible wht you will have done, will not be classified as a repair but rather an improvement so you may not get an immediate deduction.

As to your question about whose income would it be if the property is rented out is a good question. If the estate rents out the property, the income will be the estates. After probabte I think it gets a bit messy. Speak to a lawyer and an accountant ASAP.
 
There are a number of issues to consider:

1. In some states in Australia, a gift to an ex spouse in a will when the will was made before the divorce, is revoked by the divorce. So the first issue is whether the will was made before the divorce.

2. If the gift is valid then there is the issue of whether the executor has any power under the will to use other assets of the estate to maintain the property. This will depend on the wording of the Will.

3. Your mother may have rights under the Family Provision legislation depending on her needs and the needs of other beneficiaries.

If all the beneficiaries are of age to make decisions ie over 18, then you can all come to an agreement.

You need legal advice.
 
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