What if I inherited a house but don't want it in Brooklyn?

If you own a house in Brooklyn, NY and you are dealing with inherited property, this page covers what actually happens next — the local timeline, what it costs, and the options that stay open to you. Everything below is specific to Brooklyn and how sales are handled in NY, not generic national advice.

Direct Answer

If you have inherited a house in Brooklyn that you do not want, you generally have three main paths: you can sell it, refuse to accept it (legal disclaimer), or keep it as a rental property. Because Brooklyn real estate is high-value, you must first navigate the Kings County Surrogate's Court to legally transfer the title before you can do anything with the property.

Key Details

Inheriting a home in Brooklyn is often a mix of a financial blessing and a legal headache. Even if you want to get rid of the property immediately, you cannot simply hand over the keys.

The Burden of Ownership

Owning a home in Brooklyn is expensive. You are responsible for property taxes, water bills from the NYC Department of Environmental Protection (DEP), and property insurance. If the house sits empty, it can become a target for 'squatters' or receive 'Department of Buildings' (DOB) violations for poor maintenance. If you don't want the house, your goal should be to transfer or sell it as quickly as possible to avoid these costs.

The Stepped-Up Basis

One of the biggest advantages of inheriting a house in New York is the 'stepped-up basis.' Usually, if you sell an asset, you pay taxes on the profit (the difference between what you bought it for and what you sold it for). When you inherit a house, the IRS 'steps up' the value to what it was worth on the day the owner died. For example, if your grandparents bought a brownstone in Bed-Stuy for $50,000 in 1970 and it is worth $2 million today, you can sell it for $2 million and pay virtually $0 in capital gains tax. This makes selling an unwanted inherited home very financially attractive.

NY-Specific Laws

New York has specific rules regarding how property moves from a deceased person to an heir.

1. Probate and Administration

To sell the house, you must be appointed as the Executor (if there was a will) or the Administrator (if there was no will). This happens in the Surrogate's Court.

• Formal Probate: In New York, if the estate includes real property (a house), you generally must go through formal probate.
• Small Estate Threshold: New York has a 'Small Estate' process (SCPA Article 13) for estates under $50,000. However, this process cannot be used to transfer real estate. Even if the house is the only thing the person owned, you must use the full probate process because it is real property.

2. The NY Estate Tax 'Cliff'

New York does not have an 'inheritance tax' (a tax paid by the person receiving the gift). However, it does have an estate tax (a tax paid by the deceased person's estate). For 2024, the exemption is $6.94 million. If the total estate is worth more than this, the tax is applied. New York is unique because of the 'tax cliff': if the estate exceeds the exemption by more than 5%, you lose the entire exemption and owe taxes on the whole amount.

3. Transfer on Death (TOD) Deeds

As of July 2024, New York finally joined many other states in allowing 'Transfer on Death' deeds. This allows a homeowner to name a beneficiary who gets the house automatically without going through probate. If the person who left you the house signed one of these before they died, you might be able to take ownership much faster.

4. Disclaimer of Interest

Under New York Estates, Powers and Trusts Law (EPTL) § 2-1.11, you have the right to 'disclaim' or refuse an inheritance. You must do this in writing, usually within nine months of the death. If you disclaim the house, it passes to the next person in line as if you had died before the owner. This is useful if you want the house to go to your children or siblings instead without you ever touching the title.

Brooklyn Local Context

In Brooklyn, all legal matters regarding inherited property are handled by the Kings County Surrogate's Court.

• Location: 2 Johnson Street, Brooklyn, NY 11201.
• Public Records: You can visit the 'Record Room' to see the status of an estate or check if a will has been filed.

NYC Transfer Taxes

If you decide to sell the house, you need to be aware of the New York City Real Property Transfer Tax (RPTT). For residential properties sold for over $500,000, the NYC tax rate is 1.425%. This is in addition to the New York State transfer tax of 0.4%. If the house sells for over $1 million, the 'Mansion Tax' also applies, which starts at 1% and goes up based on the price.

What You Can Do Right Now

1. Secure the Property: Ensure the locks are changed and the heat is kept on (at a low level) to prevent pipes from bursting during Brooklyn winters. Notify the insurance company that the owner has passed.
2. Order a Death Certificate: You will need multiple original copies for the court and banks.
3. Hire a Probate Attorney: Because New York's 'Surrogate's Court Procedure Act' (SCPA) is complex, most people need a lawyer to get 'Letters Testamentary,' which give you the legal power to sell the house.
4. Get an Appraisal: You need to know the value on the date of death to establish your 'stepped-up basis' for tax purposes. This is critical even if you don't plan to sell immediately.
5. Decide on Disclaimer: If you truly don't want the house and want it to go to the next heir, talk to a lawyer about a 'Renunciation of Property' before you take any actions that look like ownership (like collecting rent).