Can an Executor or Heir Live in or Rent the House During Michigan Probate?

Rules and Responsibilities for Occupying or Leasing a Probate Property in Michigan

When a loved one passes away, families are often left with more questions than answers—especially when it comes to what happens to their home.

Can someone move in? Can it be rented out to generate income? Is it even legal to do anything with the property before probate ends?

In Michigan, the answer depends on who has legal authority and what is in the estate’s best interest. During probate, the house doesn’t belong to any individual heir—not yet. It belongs to the estate, and decisions about how it’s used fall to the personal representative (sometimes called the executor).

This guide explains what Michigan law allows when it comes to occupying or renting out a home during probate—and how to do it responsibly, legally, and in a way that avoids conflict.

Whether you're the personal representative or a family member involved in the process, understanding your options can help prevent costly mistakes, disagreements, or delays in settling the estate.

Who Legally Owns the House During Probate?

One of the most common misconceptions is that heirs immediately “own” the home after a loved one passes away. In reality, the estate becomes the legal owner of the property during probate—even if a will names specific heirs.

Under Michigan law, the personal representative (PR) is appointed by the probate court to manage the estate. This includes the authority to control, secure, and maintain real estate while probate is ongoing. According to MCL 700.3711, the PR has the power to take possession of estate property and preserve its value for distribution.

This means:

Heirs do not have automatic rights to access, occupy, or rent out the home.
The PR is responsible for protecting the property—often by maintaining insurance, paying taxes, and addressing safety issues.
If someone is living in the property without the PR’s consent, it could be considered unauthorized use and may require legal action to resolve.

Understanding this chain of authority is essential. Any decisions about who can live in or rent out the property must come from the PR, not the heirs, and must align with the estate’s obligations to creditors and beneficiaries.

Can Someone Live in the Home During Probate?

Yes, someone can live in a home during probate in Michigan—but only under specific conditions, and only if it benefits (or at least doesn’t harm) the estate.

Here’s how it works:

🔹 If the Home Was Vacant at Death:

If the decedent lived alone and the house is empty, the personal representative (PR) controls access. They may choose to:

Leave the property vacant (while maintaining insurance and upkeep)
Allow someone to live there temporarily (if it prevents vandalism or protects value)
Begin preparing the home for sale

🔹 If a Family Member Already Lives There:

If a spouse, adult child, or other relative lived with the deceased, they may be allowed to stay—but only with the PR’s consent. Their continued occupancy should not delay or interfere with estate administration.

🔹 If Someone Moves In After Death:

No one should move into the property without permission. The PR must evaluate:

Does this create liability for the estate?
Will it delay a sale?
Will rent be paid to the estate?
Is insurance still valid?

Unauthorized occupancy—even by heirs—can trigger disputes, legal action, or insurance problems. It’s the PR’s duty to ensure the use of the home aligns with their fiduciary responsibilities, which means protecting estate value and ensuring all heirs are treated fairly.

For more detail on managing inherited property with multiple heirs, see:
👉 Selling Inherited Property with Siblings in Michigan
👉 How to File a Partition Lawsuit in Michigan When a Sibling Won’t Sell Inherited Property

"When you mentioned that you would give us an offer within 24 hours and then close quickly I didn’t really believe that we would have the house sold in only 2 weeks. I’m glad I found you.”

Michelle L. - Michigan

Can the Personal Representative or Heirs Rent Out the Property?

In some cases, renting out a home during probate can help cover costs—like mortgage payments, taxes, or upkeep—but it must be handled properly and legally. In Michigan, only the personal representative (PR) has the authority to lease the home during probate—not the heirs.

🔹 When Is It Allowed?

If the PR believes that renting out the property is in the estate’s best interest, they can do so—especially if the house would otherwise sit vacant and deteriorate. However, the PR must ensure:

The lease agreement is formal and documented
Rent payments are deposited into the estate’s account
Income is used for estate-related expenses, such as insurance, repairs, or debts

🔹 Is Court Approval Required?

Not always. If the PR has full (unrestricted) Letters of Authority, they generally do not need the court’s permission to lease property. However, if the PR has limited or restricted authority, they may need to request court approvalbefore entering into a lease.

You can verify the PR’s powers by reviewing the Letters of Authority issued by the probate court.

🔹 Why Transparency Matters:

Rental agreements must be well-documented and transparent, especially if one of the heirs wants to rent the home. The PR should avoid any appearance of favoritism or self-dealing. Rent should be fair market value and reported as part of the estate’s financial activity.

For more guidance, review Michigan Legal Help’s overview of property management in probate.

Responsibilities When Living in or Leasing the House

Whether someone is living in or renting out a house during probate, there are critical responsibilities that must be managed carefully to protect the estate—and avoid legal or financial trouble.

🔹 Insurance Coverage

One of the most overlooked issues is home insurance. Standard homeowner’s insurance typically does not cover vacant or estate-owned properties. The personal representative (PR) must:

Notify the insurance company of the owner’s death
Convert the policy to one that covers either:
- A vacant property
- A rental or estate-held property

Failure to update the policy can result in denied claims if there’s damage, theft, or fire.

🔗 For guidance on insurance differences, see:
Vacant Home Insurance in Michigan

🔹 Utilities, Maintenance, and Safety

The PR is also responsible for keeping the property in safe, working condition:

Pay essential utilities (electricity, heat, water)
Handle basic repairs or safety issues (e.g., broken locks, roof leaks)
Maintain lawn care or snow removal as needed

These efforts protect the home’s value and avoid code violations or damage.

🔹 Accounting for Rent or Occupancy

If the property is occupied or leased:

Rent must be deposited into the estate’s account
All expenses must be tracked and documented
The PR may be required to submit this financial activity to the probate court

This level of transparency helps avoid accusations of mismanagement and ensures all heirs are treated fairly.

For more information on what happens when properties sit empty, visit:
👉 What Happens When a House Sits Vacant in Michigan?

Gloria B. - Clinton Township, Michigan

“Thank you for contacting me. I didn’t know what I was going to do with this house"

Common Challenges and Risks to Watch For

Even when everyone has good intentions, allowing someone to live in or rent out a probate property can create serious complications—especially if there’s no clear agreement or legal oversight. Below are some of the most common issues that arise in Michigan probate cases:

🔹 Disputes Between Heirs

It’s not uncommon for heirs to disagree over who can live in the home, whether rent should be charged, or how income should be distributed. For example:

One sibling may live in the home while others want it sold.
Some heirs may expect rent from an occupying relative.
Others may claim the arrangement is unfair or delays liquidation.

To avoid conflict, the personal representative (PR) should keep detailed records and involve the probate court if necessary to ensure transparency.

🔹 Delays in Sale or Settlement

An occupied home—whether by a family member or tenant—can slow down the probate process, especially if:

The occupant refuses to leave when it’s time to sell
Repairs or showings are difficult due to occupancy
Buyers are less interested in a tenant-occupied property

In these cases, the estate may need to file a court petition or even begin eviction proceedings.

🔹 Insurance and Liability Problems

As noted earlier, failing to disclose occupancy or vacancy to the insurance provider can result in:

Voided insurance coverage
Uninsured damages from fire, flooding, or break-ins
Legal liability if someone is injured on the premises

Being proactive with the insurer is critical to protect the estate’s interests.

For more on how property issues can complicate estate resolution, explore:
👉 Sell a House with Bad Tenants in Michigan
👉 Estate Home Solutions

Best Practices for Personal Representatives Managing Occupancy or Leasing

If you’re the personal representative (PR) of an estate in Michigan, your role comes with legal obligations—and scrutiny. Whether the home is lived in, rented out, or left vacant, following best practices can help you avoid legal trouble and preserve estate value for all beneficiaries.

🔹 1. Keep Everything in Writing

Always document:

Who is living in the house
Whether rent is being charged
Terms of any lease or use agreement
When the property is expected to be vacated or sold

Even if the occupant is a family member, written agreements prevent misunderstandings and protect the PR from accusations of favoritism.

🔹 2. Consult the Court if There’s Any Uncertainty

If heirs are disputing a rental arrangement—or if you’re unsure whether you have authority under your Letters of Authority—consider filing a motion with the probate court. This provides:

Legal clarity
A record of fiduciary diligence
Protection from liability if heirs later object

For more on Michigan probate process details, see:
🔗 Michigan Legal Help – Overview of Formal Probate

🔹 3. Be Transparent With the Heirs

Send periodic updates about:

Occupancy status
Rental income (if applicable)
Maintenance actions or repairs
Future plans for the property

This shows good faith, avoids surprises, and helps maintain trust—even in emotionally difficult situations.

To learn more about navigating shared ownership and decision-making among heirs, visit:
👉 How to Sell Your Share of an Inherited House in Michigan
👉 Selling Inherited Property with Siblings in Michigan

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