WHO GETS THE DEPOSIT WHEN A TENANT DIES?

WHO GETS THE DEPOSIT WHEN A TENANT DIES?

Question: One of our residents passed away in his unit.We sent the security deposit accounting with a refund check made out to “The Estate of” the tenant.His children came into the office and said they can’t cash it.Who should the check be made out to?

Answer:Making the check payable to the estate is not wrong, but it creates a practical problem.To cash it, the family would have to open a probate and an estate bank account, which is rarely worth the time or money for a security deposit.Arizona has a simpler process for small estates, that can apply 30 days after the person dies.Under A.R.S. § 14-3971, a family member can collect money owed to the deceased person by signing a notarized affidavit, but only after 30 days have passed since the death.Since your accounting is due before then, the first check will usually have to be issued to the deceased tenant or the estate.Once the family provides a copy of the death certificate and the signed affidavit, get the original check back or place a stop payment on it, and then reissue the refund to the person who signed the affidavit.That way, only one check is ever outstanding.Also keep in mind that the lease does not simply end when a tenant dies, so there are often charges that reduce or eliminate any refund.