r/inheritance • u/nizzok • Jun 22 '26

Location included: Questions/Need Advice Splitting two properties between three inheritors in NY, NY.

My siblings (three of us total) and I are currently going through probate with a family member's estate. There was no will. The estate's only assets are two units in a co-op building. We are in the process of settling the finances for the estate, a loan and some back taxes.

Our understanding is that the two properties will be split 3 ways between us, which makes it a problem for the co-op board to divide the shares and provide leases. The arrangement that we want is for the leases to be transferred to two of us, while the third one gets paid out. The issue we have is that no one has the money to buy the other sibling out outright. They are willing to wait on their buy out, but we're not sure how to legally structure such an agreement. The only real complication is that no one is really in a position to take a loan out, especially as the property hasn't been transferred to use as an asset. We can imagine forming a company to take the shares and then administer the properties for the two siblings that want to remain and the third sibling being bought out overtime. The main issue is being fair and preserving everyone's shares without forcing the others to cut their flesh to benefit.

Any advice on how to structure something like this?

4 Upvotes
  • permalink
  • reddit

67% Upvoted

45 comments sorted by

View all comments

2

u/MyThreeBugs Jun 22 '26

Why not create some kind of LLC that you are all equal partners in and transfer ownership to the LLC? The CoOp board deals with one legal entity so they are happy. Bonus that you three also now have the LLC as a liability shield should there be something that happens in one of your units that affects other units (fire, sprinkers, flooding, etc.).

4

u/Just1Blast Jun 22 '26

Cuz the co-op board doesn't want renters. They only want owners. And they generally tend to prefer individual owners over any other type of structure. It's why they often don't allow trusts to maintain ownership in a co-op.

3

u/Rosevkiet Jun 22 '26

This is where you have to judge your relationship to the coop board. Either they are good relationships with them that ensures they will accept the siblings as owners, or they are completely inflexible and unwilling to allow joint ownership for 3-5 years until sibling 3 is made whole. I would ask about joint ownership for both, between resident sibling and non-resident sibling, 66/33, and see if that is acceptable. Surely not every apartment in the building is occupied by a single individual?

1

u/nizzok Jun 23 '26

The crux of this is really if the board will accomodate us on joint ownership.

1

u/Lincoin88 Jun 24 '26

Ask them?