There's a lot of variables that have to be considered so one can prepare for the possibility. One thing that the estate will have to deal with on the rentals is depreciation. Before rental property can be passed to anyone outside of the estate, it is the estate that will recapture depreciation and pay taxes on it. Depending on the amount of depreciation, that can eat up quite a bit of any cash in the estate that would otherwise be passed to heirs.
Then if there's not enough cash to pay the estate taxes, it's very possible the estate will have to sell something (such as a rental) in order to get the cash to pay the taxes with.
Then for the rentals, there's the matter of the existing signed lease. How is it worded? Is it set up so that the terms of the will apply to both parties, *and* their heirs and successors? Weather it is or not, wording can play a key in the enforceability of the lease. So what happens if a tenant runs or just stops paying the rent during the probate process, or while the property is still owned by the estate? Can the estate evict the tenant for non-payment of rent? Can the estate pass on to a beneficiary recipient, a rental property where the renter is in arrears? If so and the estate does that, then does the beneficiary recipient have to start the 1-3 month eviction process all over from day one? Meanwhile, what about the mortgage payments on the property?
What I'm doing with the above is trying to make a point. That point being that it is very, very dangerous for someone not trained, qualified, certified and licensed in the law on this, to try and handle things alone. The bigger the estate, the more dangerous this is.
As the legally recognized administrator of an estate, that administrator is personally responsible, legally liable and financially culpable under the law, for the handling of that estate. If the administrator does something illegal or wrong, weather they are aware of the legality or not, then it is the administrator who has to answer for it. Any fines and penalties assessed because of incorrect or invalid actions by the administrator, are the liability of the administrator, and can not be paid from the estate. If the administrator is found by the courts to have not done things right, then it is the administrator that pays any and all fines and penalties (if assessed by the court) from their personal funds. They can not attach it to the estate, as an expense of managing the estate.
Lord forbid if it's found the estate suffered a loss because of that administrator's mismanagement, perceived or actual. If the courts order the administrator to reimburse the estate for losses, that could really bite.
