Episode 24: How to Avoid Probate In Case of Co-Op Apartment Ownership

Episode 24: How to Avoid Probate In Case of Co-Op Apartment OwnershipSummary:In this episode of Rock the Closing, hosts Orsolya Bartha, Esq. and Dalia Zaza, Esq. are joined by guest speaker Bracha Etengoff, Esq., a trust and estate attorney, to discuss practical strategies for avoiding probate when you own a co-op apartment in New York City.In this episode, you'll learn:What probate means and why it's particularly challenging for co-op apartments, which are considered personal property rather than real estateThe timeline and limitations of probate, including why you cannot sell or rent a co-op apartment until an executor is appointed (which can take 6 months to a year in downstate New York)How joint ownership with rights of survivorship works as the most effective tool to bypass probate entirelyThe strategic approach to gifting shares, including why transferring only a small percentage (like 10%) to a beneficiary during your lifetime can help avoid both probate and minimize capital gains taxesUnderstanding step-up basis and how it affects the tax implications when inheriting versus receiving gifted sharesThe practical steps involved, including navigating transfer applications, board approvals, and mortgage modifications with existing lendersTimeline and costs for the transfer process (typically 6-8 weeks with modest fees that are significantly less than probate costs)Important considerations about when this strategy works best – ideal for families with one adult child, but more complex when multiple beneficiaries or special circumstances are involvedGuest Contact Information:Bracha Etengoff, Esq.Email: ⁠[email protected]⁠Phone: (347) 640-0993The attorneys emphasize that while avoiding probate can save significant time and money, these decisions require careful analysis with qualified professionals including estate attorneys, real estate attorneys, and CPAs.Music CreditsMusic by Percussion and Claps by Infraction. Find more at infractionimhereHELP US OUT!Help us reach new listeners by leaving us a rating and review on ⁠⁠⁠Apple Podcasts!⁠⁠⁠ It takes less than 30 seconds and really helps our show grow, which allows us to bring on even better guests for you all! Thank you. We really appreciate it!