What Happens to Brooklyn Real Estate After the Owner Dies?
A common estate planning question we get is, “What happens to my house when I die?” Indeed, for many Brooklyn residents their home or other real estate is their most valuable asset. So it is important to take appropriate steps now to ensure that that real estate is passed on according to your wishes upon your passing.
The actual process of transferring title to real estate will depend, however, on how title to the property is held. Here are a few of the more common scenarios that we see in our practice.
Sole Ownership
If a person holds sole title to real estate in their own name, then it is generally considered a probate asset. This means that upon the sole owner’s death, the property passes to any beneficiaries named in the deceased owner’s will. Absent a will, the property passes to the owner’s next of kin according to the terms of New York’s intestacy laws. In either case, the property itself will need to go through the probate process, which can take several months (even years) to complete.
One exception to this rule is that a sole owner can sign a “transfer on death” deed, which designates a beneficiary to automatically assume ownership of the property when the owner dies. New York recognizes such deeds as of July 2024.
Joint Tenants with Rights of Survivorship
Two or more people may own real estate as joint tenants with rights of survivorship. In simple terms, when one joint tenant dies, their interest in the property automatically passes to the survivors. The interest is not considered part of the deceased joint tenant’s probate estate.
Married couples may hold real estate as tenants by the entirety. This is just another form of joint tenancy with rights of survivorship. When one spouse dies, their interest in the property automatically passes to the surviving spouse.
Tenants in Common
When two or more people own real estate as tenants in common, they each retain an individual, undivided interest in the property. For example, if Frank and Joe own a commercial property as tenants in common and Frank dies first, his share in the building would pass as probate assets under his estate. This would not impact Joe’s separate ownership of his share. Also note that tenants in common may own different shares in the property, e.g., Frank owned 60 percent of the property and Joe owned 40 percent.
Trusts and Business Entities
If you transfer your ownership in real estate to a revocable trust during your lifetime, the property remains under the control of your successor trustee after death. The property itself is not a probate asset. Similarly, if you own real estate through a legal entity such as a corporation, limited liability company, or limited liability partnership, the entity retains ownership after your death. However, your ownership interest in the legal entity may be considered a probate asset.
Contact a Brooklyn Estate Planning Lawyer
When it comes to your real estate, you want to make sure your affairs are in order long before something happens to you. If you need to speak with an experienced Brooklyn estate planning lawyer, contact Yeung & Associates, PLLC, today at 718-889-7568 to schedule a consultation. Our office speaks Mandarin & Cantonese in addition to English.