When you inherit a co-op apartment, you are inheriting shares in a corporation that owns real property. You can sell those shares from the estate, or you can keep them. However, in order to be allowed to live in the apartment, the Board of Directors of the cooperative corporation must approve you.
What happens to co-op shares when you die?
Whether or not there is a will, a proprietary lease in a co-op will not terminate upon the death of an owner. The decedent’s interest passes to the estate and is inherited by the beneficiary in the will or by the next of kin. That may not be the co-owner of the shares—or even the spouse of the decedent.
Can you pass down a co-op?
In some co-ops, transferring an apartment after death to certain family members, like a spouse or an adult child, does not require board consent. However, most co-ops do require the board to approve the transfer to a financially responsible family member.
Are co-op shares real property?
Co-ops are not considered real property. When you buy into a co-op, you become a shareholder in a corporation that owns the property. As a shareholder, you are entitled to exclusive use of a housing unit in the property.
Can you put a co-op in a trust?
A living trust is an arrangement where assets, such as co-op shares, are transferred into the trust so that property may be managed under one document. The trustee of the trust manages the property in the trust. It may be possible to transfer co-op shares to beneficiaries via a living trust.
Can you put a co op in a trust?
What does trust revocable mean?
A revocable trust is a trust whereby provisions can be altered or canceled dependent on the grantor or the originator of the trust. Provisions of the trust can be changed, and the estate will be transferred to the beneficiaries upon the trustor’s death.
What is a living trust?
A living trust, specifically a revocable living trust, is a legal document that places your assets—investments, bank accounts, real estate, vehicles and valuable personal property—in trust for your benefit during your lifetime, and spells out where you’d like these things to go upon your death.
What happens when you inherit a coop?
“The individuals who inherit the stock and lease can also choose to sell them to an unrelated third party without taking title to the stock or occupying the apartment themselves. Such a transaction would be subject to the approval of the cooperative’s board.
Are shares in a coop considered real property?
How do I transfer ownership of a cooperative?
Answer: Transferring a cooperative to an adult child, relative, or friend requires having cooperative shares reissued with all of the co-owners’ names on the shares. If the original owner becomes a co-owner, then his or name appears on the new shares together with the names of the new co-owners.
Are co-ops a good investment?
The main advantage of buying a co-op is that they are more affordable and cheaper to buy than a condo. For a real estate investor looking to make passive rental income immediately, this means co-op apartments are not a good investment. This is one reason why most property investors gravitate towards buying condos.
Do you build equity in a coop?
Since the cooperative corporation does not own any real estate, the cooperative does not build up any equity (just as a renter doesn’t build equity).
Can a co-op stock be passed in a will?
Passing Stock Via Will. Stock in a co-op may be transferred upon death via a last will and testament. A transfer of co-op shares via a will may still need to be approved by the co-op board after the testator’s death.
Can a person inherit shares in a co-op?
“Co-op shares are personal property,” says Weisberg. The shareholder does not own the apartment but rather has a proprietary lease for their individual apartment. And as is the case with most issues in a co-op, the inheritability of the shares depends on the specific co-op’s governing documents.
Is the ownership of a co-op personal property?
Ownership of a co-op, however, is ownership of stock in a corporation — and securities are personal property.
Can a co-op share be passed to a living trust?
In this case, if the shares were transferred to a living trust and not a person, it may violate that provision in the co-op requirements. Stock in a co-op may be transferred upon death via a last will and testament. A transfer of co-op shares via a will may still need to be approved by the co-op board after the testator’s death.
