Co-ops are not the most common form of property but do come into play in a number of estates. As a result, estate professionals need to keep in mind a couple of things when faced with a client having or inheriting one. First, the stock in the co-op needs to have its ownership determined in order to make proper arrangements. The differences between sole ownership, joint tenancy with survivor-ship rights, or tenancy in common can have dramatically divergent outcomes so establishing the type is a key initial step. Second, the rules for the co-op concerning transfer of the stock after death must be consulted. Depending on the organization, there might exist significant restrictions on transfers that will require the property to ultimately be sold. Taking the above steps will not complete all preparation needed to to plan for a co-op, but they do offer important first steps that provide vital information that will dictate all future action.
See Stephen M. Lasser, Q&A: Inheriting a Co-op from an Estate, Cooperator.com, November,
Special thanks to Brian Cohan (Attorney at Law, Law Offices of Brian J. Cohan, P.C.) for bringing this article to my attention.
