Estates and Outgoings

By Tim Lynch

Who gets the rent and pays the outgoings? A beneficiary entitled to property under a will such as real estate is taken as having become entitled to the property from the date of death. That means they are usually entitled to any income such as rent generated by the property from the date of death and also liable to bear the outgoings, unless the Will says otherwise. That means outgoings such as council rates, water rates and the like are charged against the property itself and do not need to be paid or discharged by the executor before transmitting the property to the beneficiary if there is no rent available to do so. If the executor pays those outgoings from other estate property in the course of administration, they should seek reimbursement from the beneficiary entitled to the property charged with the outgoings or adjust their interest in residue. Blanket v Blanket [2007] NSWSC 1439.

Disclaimer

The above does not constitute legal advice, but is information which may be of general interest. Beswick Lynch Lawyers will not be held liable or responsible for any claim, which is made as a result of any person relying upon the information contained in this publication.