A person’s home is often among the most central assets in his/her estate. When someone passes away, it is critical to review the deed and find out who legally owns the home. There are a number of common ways that real property is titled among parties. It may revert to a spouse or joint owner automatically at death, or it may pass through an estate.
When there is just one person on a deed and that individual passes away, an estate proceeding will generally be required to transfer ownership of the property. This is governed by a Will if the individual has one. Otherwise, the property passes to their next-of-kin under New York State intestacy laws. The proceeding takes place in the county Surrogate’s Court.
Many people use trusts to avoid such court proceedings. A trust is an estate planning entity that can own real property during an individual’s lifetime. The creator of the trust often maintains full control of the property, or at least the right to reside there for life. When the individual dies, the property can usually be sold or distributed to the beneficiaries without the need to go through court.
A life estate deed is another common tool wherein the homeowner actually re-titles the deed to name their children or other beneficiaries as contingent owners (known as remainderpersons) but explicitly reserves all life usage rights to him/herself. Upon death, the life rights are extinguished and the property automatically passes to those listed on the deed.
To determine which option is right for you, you should discuss your unique situation with your estate planning attorney.
This is not intended to be legal advice; you should contact an attorney regarding your specific situation.
Christine Harrington is an associate at J&G Law concentrating in estate planning and estate administration. She can be reached by phone at (845) 764-9656 or by email.