Ok so in that case I allocate all rental income to the estate, and so the all of the depreciation as well, and take the loss as a deduction against any other income, and the beneficiary gets their taxable K-1 income reduced(and I can choose what income is passed on, like dividends rather than interest, since the tax rate is lower). Better than passing on the depreciation to a beneficiary who can't use it(due to income) until the house is sold, if ever.
