A New York estate may have many different types of assets. These may include bank accounts, brokerage accounts, real estate, and retirement funds. Each of these items can present various issues for an executor or administrator. The estate fiduciary has an obligation to collect and protect estate assets. The failure to do so can be a breach of fiduciary duty. The New York Probate Lawyer Blog has published many articles discussing estate settlement and the responsibilities of administrators and executors.
One asset which may have unique complexities is a cooperative apartment. A cooperative apartment, particularly in the New York City area, is a very common type of residence owned by a decedent. A cooperative apartment is not real estate. The ownership interest is personal property in the form of stock in the cooperative corporation. This interest allows the owner to become a lessee under a proprietary lease where the cooperative corporation is the lessor or, in other words, the landlord. As a result, the estate fiduciary, just like the decedent, must comply with the rules and regulations of the co-op with regard to all aspects of the apartment.
One of the main issues that a fiduciary may face is in connection with the sale of an apartment. Most co-ops require approval of any transfer or sale by the cooperative Board of Directors. The prospective purchaser must apply to the Board for approval. In New York, the Courts allow a tremendous amount of discretion to a co-op in approving or rejecting a sale. The Board is not even required to provide any specific reasons if it decides to reject an application from a prospective purchaser. In the absence of some type of discrimination, an estate fiduciary is at the mercy of a co-op board in trying to sell an apartment. This can be very frustrating, particularly when the estate is being charged monthly for maintenance fees and mortgage payments. The sale of residential real estate or a condominium apartment does not require approval from a third party.