Co-op in an estate administration? What to do first. 

Co-ops are property types popular in major cities such as New York and Miami. If you are working through an estate administration that involves a co-op, read this article to understand the first four steps you will need to take.
Read the Full Story

Co-op in an estate administration? What to do first. 

Co-ops are property types popular in major cities such as New York and Miami. If you are working through an estate administration that involves a co-op, read this article to understand the first four steps you will need to take.
What is a co-op?

Cooperative housing (commonly described by referring to an individual cooperative or “co-op”) is a type of homeownership. A co-op can be defined as a building that is owned by a corporation, whose shareholders are all of its inhabitants. When buying into a co-op, you’re not directly purchasing a parcel of property, you’re actually buying shares in a corporation that allows you to live in one of the building’s units via a contractual arrangement referred to as a “proprietary lease.” Although cooperatives are for-profit businesses, they do not exist to maximize profit. A cooperative ownership structure is common in large cities, like New York City and Miami. Below are four things you should do first when working through an estate that has a co-op.

Step 1:

Locate original stock certificate and lease. If you cannot find it, contact the building agent/management company for requirements to reinstate and ensure a smooth transfer (affidavit of lost documents? Surety bond? Eagle 9 policy?). You can also try to obtain copies from attorney who helped decedent purchase the co-op, if possible

Step 2:

Confirm how the decedent held title – tenants by entirety, joint tenants with rights of survivorship, tenants in common? This is important information to gather once you have the certificate or a copy of it.

Step 3:

Confirm with the number of shares owned by decedent withe the co-op management company and board even if you think you have the stock certificate, as sometimes there are subsequent stock purchases to acquire a larger space in the building.

Step 4:

If it was owned at one point by a married couple, did they purchase it before 1996? If the stock certificate does not list them as JTWROS, or “husband and wife,” then a New York State Estate Tax Release of Lien form is required.

 

Need more information? Read this informative article: Eagle 9 Policies, Co-ops, and Estate Administration

Read the Full Story

Co-op in an estate administration? What to do first. 

Co-ops are property types popular in major cities such as New York and Miami. If you are working through an estate administration that involves a co-op, read this article to understand the first four steps you will need to take.
Read the Full Story
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Co-op in an estate administration? What to do first. 

Trustate Team
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What is a co-op?

Cooperative housing (commonly described by referring to an individual cooperative or “co-op”) is a type of homeownership. A co-op can be defined as a building that is owned by a corporation, whose shareholders are all of its inhabitants. When buying into a co-op, you’re not directly purchasing a parcel of property, you’re actually buying shares in a corporation that allows you to live in one of the building’s units via a contractual arrangement referred to as a “proprietary lease.” Although cooperatives are for-profit businesses, they do not exist to maximize profit. A cooperative ownership structure is common in large cities, like New York City and Miami. Below are four things you should do first when working through an estate that has a co-op.

Step 1:

Locate original stock certificate and lease. If you cannot find it, contact the building agent/management company for requirements to reinstate and ensure a smooth transfer (affidavit of lost documents? Surety bond? Eagle 9 policy?). You can also try to obtain copies from attorney who helped decedent purchase the co-op, if possible

Step 2:

Confirm how the decedent held title – tenants by entirety, joint tenants with rights of survivorship, tenants in common? This is important information to gather once you have the certificate or a copy of it.

Step 3:

Confirm with the number of shares owned by decedent withe the co-op management company and board even if you think you have the stock certificate, as sometimes there are subsequent stock purchases to acquire a larger space in the building.

Step 4:

If it was owned at one point by a married couple, did they purchase it before 1996? If the stock certificate does not list them as JTWROS, or “husband and wife,” then a New York State Estate Tax Release of Lien form is required.

 

Need more information? Read this informative article: Eagle 9 Policies, Co-ops, and Estate Administration

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