The probate process in Ohio can be challenging to navigate even when dealing with simple matters. Things can become even more complex if it involves a rental property. Here’s what you need to know about dealing with rental property in probate.
Title of the property
Whether a rental property will go through probate depends on how it was owned or titled. For instance, if the decedent owned that property alone and it’s only their name on the title, the real estate won’t go through probate. On the other hand, if the decedent owned the property with other people, it may go through probate depending on the type of ownership involved.
A good example where a rental property won’t go through probate is when it was held as joint tenants with rights of survivorship. The tenants will automatically carry on with the decedent’s interest on that property after their passing. However, if the tenants have no rights of survivorship, then the property will go through probate where the judge will rule on decedent interests.
Property held in a trust doesn’t go through probate. The named trustee in the estate plan will manage the rental property as desired by the decedent.
Location of the property and probate
What happens in a situation where an Ohioan owns rental property in another state? In this case, probate proceedings will be opened in the state the property is located. The same applies when the property is in Ohio, but the decedent lives in another state.
Can a rental property in probate be rented out?
Ohio law doesn’t prohibit the beneficiaries or estate executor from renting out the property while it is in probate court. If the decedent was renting out that property while they were still alive, the situation would continue as long as the tenants’ lease is still active. The heirs or executor can decide what happens next after the lease expires.
When creating an estate plan, choosing an executor who will have your best interest at heart is very important. Remember that the probate process cannot start unless your executor or heir steps up and files the appropriate paperwork to begin the process.