Trust and Estates Law Section Newsletter- NYSBA
"Cooperative Housing Corporations – Ownership by Trusts: A Retrospective and a Forecast"
Every decade or so, we write an article discussing trends in trust ownership of cooperative apartments. Trends are largely driven by changes (or feared ones) in the Federal estate, gift and generation-skipping tax laws. This article therefore addresses recent changes in the Federal estate, gift and generation-skipping taxes and their impact on requests to transfer ownership of cooperative apartments to a variety of estate planning trust vehicles, as well as how cooperative housing boards corporation evaluate such requests. We hope that our insights will be helpful to both counsel to cooperative housing corporations and individual shareholders, and will facilitate such requests to symbiotically achieve the apartment owner's personal estate planning objectives while protecting the integrity of the cooperative housing corporation and its fiduciary obligations to all shareholders.