Q: Can my sister demand rent from my daughter when my mom gave her permission to live for free

A: An attorney cannot realistically answer questions pertaining to someone's specific rights in property based on unknown documents without sitting down and looking at the documents in question.

That said, it would generally be "legal" for an estate to ask someone occupying estate property to pay rent unless there is a controlling legal document (such as a Will or Trust or existing bona fide lease) that sets forth other terms. A Personal Representative is obligated to disburse property according to the Will (or if there is no Will, the laws of intestate succession).

Sometimes family members have informal arrangements that simply do not last past death. Or the arrangements may be enforceable but the time frame might not be clear (do they last a month? year? 10 years? until the occupant dies?) Ideally, a property owner who wants to give someone rights to property after they pass will be careful to set up legally binding planning documents so that their wishes bind an estate after they die. Occasionally if the status is unclear the issue will need to be decided by the court.

Your daughter may want to find an attorney who focuses on estate disputes to review your documentation, and/or if the wishes are not in a formal Will / Lease / Deed might try sitting down with the Personal Representative in mediation to negotiate a mutually agreeable time frame for occupancy and selling the house.

While not legal advice or a substitute for meeting with an attorney I hope the general information helps.