How to force tenant to deposit money directly to the estates account

[Tiffanyy808]

Hawaii
The real property is titled in the name of the estate. I am the trustee of the estate. The tenant leasing the property has been directly sending each of the two beneficiaries the monthly rent money. The estate has no cash for me as the trustee (non benificiary ) to properly manage the estate. How do I force the tenant to deposit the monthly rent money to the bank account that is in the name of the estate? I’ve written him a letter requesting he do so, but he is uncooperative. I would lend my own funds to hire an attorney, but If he refuses to deposit the funds I will not be paid back for the cost of the attorney. The estate holds a fifty percent ownership in this commercial real property located in Hawaii. The owner who owns the other fifty percent has filed a lawsuit against me for breaching my fiduciary duty by not closing the trust which is “clouding his title” to the property. I figure the first place I need to start is by getting the tenant to deposit the fifty percent share of the properties monthly rent directly to name of the estate and go from there. Please help

 

[Zigner]

Seems that you have a couple of options (not necessarily mutually exclusive). You can close out the trust and you can evict the tenant for non-payment of rent.

Since you are being sued (personally), I would suggest that you find a way to hire an attorney.

 

[LdiJ]

Hawaii
The real property is titled in the name of the estate. I am the trustee of the estate. The tenant leasing the property has been directly sending each of the two beneficiaries the monthly rent money. The estate has no cash for me as the trustee (non benificiary ) to properly manage the estate. How do I force the tenant to deposit the monthly rent money to the bank account that is in the name of the estate? I’ve written him a letter requesting he do so, but he is uncooperative. I would lend my own funds to hire an attorney, but If he refuses to deposit the funds I will not be paid back for the cost of the attorney. The estate holds a fifty percent ownership in this commercial real property located in Hawaii. The owner who owns the other fifty percent has filed a lawsuit against me for breaching my fiduciary duty by not closing the trust which is “clouding his title” to the property. I figure the first place I need to start is by getting the tenant to deposit the fifty percent share of the properties monthly rent directly to name of the estate and go from there. Please help

This is a little confusing. You are using the term "trust" and "estate" interchangeably. Which is it, an estate or a trust? If the estate/trust is only the 50% owner of the property why would the estate/trust claim all of the rental income? Why wouldn't 50% of the rental income be going to the other owner? Why does the other owner believe that his title is clouded by the fact that you have not closed out the estate/trust? Are you supposed to be closing the estate/trust and deeding the 50% of the property to the beneficiaries? If so, why have you not done so?

Who signed the tenants lease as landlord?

 

[Taxing Matters]

Hawaii
The real property is titled in the name of the estate. I am the trustee of the estate.

Well, as an initial matter, estates don't have trustees. Trustees manage trusts. The persons who manage estates are called executors, administrators, or personal representatives depending on the state and whether there was a will or not. You've told us that the property is now titled to the estate. But you've not told us with whom the tenant has the lease and what the lease says about payment of rent. Those are important facts to determine what the tenant's responsibilities are in paying the rent.

 

[FlyingRon]

Hawaii is a UPC state. While the encompassing term is personal representative, the law assumes that executor and administrator have the same meaning.

As others point out, you're being confusing. What is most important is how the property is titled. That's where the rent check should go. To the deceased (if still in his name), to the estate (if that is how it is titled), or to the trust.

Is this "tenant" somehow affiliated with the beneficiaries?

 

[Zigner]

You all make a good point - it seems more likely that the OP is the administrator of the estate and not the "trustee" of a trust set up to manage the estate's assets.

 

[justalayman]

The rent payments needs to be paid to whatever entity the lease says recieves the payments. If that was the decedent, then it would be paid to the decedents estate.

As the (presumably) administrator, if the tenants do not pay as their lease directs, then you should give the tenant notice of the delinquent rent. If they continue to fail to pay as the lease directs, you could start legal action against them whether it be an eviction or some lesser action.

 

[Taxing Matters]

What is most important is how the property is titled. That's where the rent check should go. To the deceased (if still in his name), to the estate (if that is how it is titled), or to the trust.

I disagree. I think what matters is who the lease says to pay. That may or may not be the title owner of the property.