What to do regarding security deposit being held by our deceased landlord's bankrupt estate?
Question Details:
My landlord recently died after a long illness. His sister became the executor of his estate. We haven't confirmed it with her but heard through one of the landlord's business associates that the property is probably going into default. How do we collect our security deposit from a dead man's bankrupt estate? Can we refuse to pay rent after we confirm that it is going into default? Should we put the rent money away in an escrow account until we find out what's going on?
Disclaimer: The materials provided below are informational and should not be relied upo as legal advice.
Is it your assessment that the landlord's estate is "bankrupt", or have you received written notice of a bankruptcy proceeding? Was the rental propery in question held under the deceased landlord's name, or held in a corpration or LLC? Technically, you do not have a claim for a refund of your security deposits until you move out of the property. If you refuse to pay rent, the landlord (or his estate's representative) can bring an unlawful detainer action and evict you. Perhaps you should contact the representative of the estate and confirm what is going on, rather than speculating about it. Be sure to consult your own attonrey to protect your legal rights.

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