Legal Question in Wills and Trusts in California

Inherited property

I inherited a rental property from my mother in November 2006. She had a rental contract in which she collected $2000 security deposit two years ago. The tenant gave notice this month. Am I personally responsible for this debt OR is it my mother�s expense (since she received the income and she signed the contract) and should be paid by the trust? There is a trust bank account set up for her expenses with enough money. Is there any California law to reference this issue as well as any other expense/rent type questions in the future? Thank you for responding to this question and I look forward to your response.


Asked on 5/15/07, 1:24 am

1 Answer from Attorneys
George Shers Law Offices of Georges H. Shers

Re: Inherited property

I assume that you inherited the entire rental property, which would mean all of its assets and debts. A security deposit technically should be in a separate bank account to ensure that the tenant receives it back; it is being held in trust for the tenant. Did your mother state that she wanted that particular sum of money deposited entirely separate from the rental property's other assets? Probably not. So all the funds being held in trust for tenants should be paid by your mother's Trust to the rental property accounts. If you are the trustee so control the funds, be sure to document the withdrawal and check to see that income taxes were only paid on the interest earned and not the $2,000 as that was not income to your mother as she had an obligation to pay it back. Remember that you must within 21 days after the tenant vacates give them a statement as to what sums you are returning to them and why you are keeping any sums.

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Answered on 5/15/07, 10:11 am


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