Selling inherited property in New York depends on how title was held, whether probate is required, whether a surviving spouse has rights against the estate, and whether New York-specific issues like the estate-tax cliff, transfer-on-death deeds, co-op board approval, or Medicaid estate recovery affect the sale.

• New York has a state estate tax but no inheritance tax. Heirs do not pay a tax simply for receiving property, but a larger estate can owe New York estate tax, and the tax is unusual because of a “cliff” that can wipe out the exemption entirely.
• There is no affidavit shortcut for real estate. If the home was owned in the decedent’s name alone, a Surrogate’s Court probate or administration proceeding is generally required before it can be sold. The small-estate procedure cannot transfer real estate.
• Transfer-on-death deeds are now legal in New York. As of July 19, 2024, an owner can pass real property to a named beneficiary outside probate, though an 18-month creditor window can affect a beneficiary who sells too soon.
• A surviving spouse does not automatically inherit everything. Under intestacy the spouse takes the first $50,000 plus half the balance, and the children take the rest, which can make a stepparent and stepchildren co-owners of the home.
• A New York City co-op is personal property, not real estate. The co-op board may have to approve the heir or a buyer, and if it will not, selling the shares can become the practical path.

Whether inherited property in New York requires probate depends on how the owner held title. Property that passed through joint ownership with survivorship, tenancy by the entirety, a transfer-on-death deed, or a living trust transfers outside probate. Property owned in the decedent’s name alone generally requires a Surrogate’s Court proceeding before it can be sold.

New York has a dedicated court for estates called the Surrogate’s Court, and every county has one. Here is how the common ownership types break down:

• Sole ownership. Generally requires probate (with a will) or administration (without one). The property passes under the will or by intestacy, and the estate needs court authority before title can be cleared for sale.
• Joint tenancy with right of survivorship. Passes automatically to the surviving owner, outside probate.
• Tenancy by the entirety. When a married couple takes title to New York real property together, New York generally presumes tenancy by the entirety unless the deed says otherwise. It passes automatically to the surviving spouse, with added creditor protection during life.
• Tenancy in common. The decedent’s share passes through probate or by intestacy. There is no automatic survivorship.
• Transfer-on-death deed. Passes to the named beneficiary outside probate. Note the 18-month creditor window described below.
• Living trust. Passes under the trust terms, outside probate.

One New York rule matters more than the others here: there is no streamlined affidavit to transfer inherited real estate in New York. Some states let heirs clear title to a house with a simple affidavit. New York does not. If the property must be administered, expect a formal Surrogate’s Court proceeding rather than a shortcut. For a fuller explanation of how probate works, see our guide to probate and inherited real estate.

New York is a separate-property (common-law) state, not a community-property state. Guidance written for community-property states does not apply here, and some national pages get this wrong for New York. New York has a state estate tax but no state inheritance tax. All probate and administration runs through the Surrogate’s Court in the county where the decedent lived, and New York has not adopted the Uniform Probate Code, which is part of why out-of-state rules of thumb often do not hold here.

Because Surrogate’s Court is county-based, your matter may run through New York County (Manhattan), Kings County (Brooklyn), Queens County, Bronx County, Richmond County (Staten Island), Nassau County, Suffolk County, Westchester County, Erie County, Monroe County, Albany County, Orange County, or another county, depending on where the decedent lived or where the property sits.

New York has three features that set it apart for inherited real estate: a state estate tax with an unusual “cliff,” a new transfer-on-death deed law, and the way New York City co-ops are treated.

How does the New York estate-tax cliff work?

New York’s estate tax is unusual because of its cliff. For deaths in 2026, the New York basic exclusion amount is $7,350,000. New York gives the full benefit of that exclusion only to estates at or below it. Just above the exclusion, in a narrow phaseout band, the benefit begins to disappear, and once an estate exceeds the exclusion by more than 5 percent, the exclusion is lost entirely and New York calculates the tax on the full taxable estate rather than only the amount above the exclusion.

This is not only a concern for the very wealthy. Between a New York City, Long Island, or Westchester home that has appreciated for decades and a retirement account, an estate can approach the exclusion faster than families expect. The tax itself is computed from New York’s estate-tax rate schedule, and the planning tools that address the cliff are decisions for a tax professional. New York also does not allow portability between spouses, unlike the federal system. You can confirm the current exclusion on the New York Department of Taxation and Finance estate-tax page.

Are transfer-on-death deeds legal in New York?

Yes, as of July 19, 2024. A New York property owner can name a beneficiary to receive real property automatically at death using a transfer-on-death deed under Real Property Law section 424. The deed must be signed, notarized, witnessed by two witnesses, and recorded with the county clerk before the owner dies. It is revocable at any time during life, and the beneficiary takes the property subject to any mortgages or liens that exist at death.

There is an important catch that most competing pages do not mention. New York built an 18-month creditor window into the law (RPL section 424(14)). If the probate estate is not enough to cover allowed creditor claims, the surviving spouse’s elective share, or the family exemption, the estate can reach back and enforce those claims against the transferred property for up to 18 months after death. New York title insurers have begun issuing guidance on this window, and a beneficiary who tries to sell within those 18 months may be asked to show that the estate is solvent before a clean title policy is issued.

Two more practical limits: a New York transfer-on-death deed cannot be held jointly with right of survivorship, and if a named beneficiary dies before the owner, that share lapses to the surviving beneficiary. A transfer-on-death deed also does not protect the property from Medicaid estate recovery, because the owner keeps the property during life, so it is not the same as a completed lifetime gift. For other ways owners avoid probate during life, see our guide to how to avoid probate on inherited property.

How are New York City co-ops inherited differently?

A New York City co-op is personal property, not real estate, and that changes almost every step of inheriting one. When you own a co-op, you do not own the apartment as real property. You own shares in a corporation that owns the building, plus a proprietary lease for your unit.

In practice, co-op boards, managing agents, lenders, and transfer agents often require full Letters from the Surrogate’s Court, a New York State tax release, the original stock certificate, and the proprietary lease before they will recognize a transfer, so the small-estate shortcut that the share value might technically allow rarely works. Co-op boards also have broad authority to approve or reject who may live in the building under what New York courts call the business judgment rule, limited mainly by anti-discrimination law and the building’s own governing documents. A board’s refusal to approve occupancy or a transfer can leave the estate or heir with a sale as the practical path. An heir who does not want to live there can sell the shares from the estate, but the buyer still needs board approval, and New York State and New York City transfer taxes still apply on the sale.

How the owner held title decides whether the property goes through probate, who receives it, and who signs to sell it. New York presumes that co-owners hold as tenants in common unless the deed says otherwise, with one exception: a married couple taking real property together is presumed to hold as tenants by the entirety.

When someone dies without a valid will in New York, the surviving spouse does not automatically take everything when there are also children. The spouse takes the first $50,000 plus one-half of the balance, and the descendants take the other half, by representation. This formula surprises many families and is the single most common point of confusion in New York estates.

Why this matters when you want to sell: when a spouse and children inherit together, the home becomes fractionally owned. No single heir can usually sell the whole property alone, and in a blended family the decedent’s children, including children from a prior relationship, can end up co-owning the home alongside the surviving spouse.

A few more rules sit on top of the formula. Stepchildren do not inherit unless they were legally adopted, and an unmarried partner does not inherit under intestacy regardless of how long the relationship lasted. Non-marital children can inherit once legal parentage is established. Half-blood relatives inherit equally with whole-blood relatives.

A surviving spouse in New York cannot be fully disinherited, and these protections can directly affect whether and when an inherited property can be sold.

What is the spousal elective share in New York?

The elective share is the greater of $50,000 or one-third of the net estate. To claim it, the spouse files a notice of election, generally within six months of Letters issuing and no later than two years after death.

New York pulls certain assets back into the calculation as “testamentary substitutes,” including payable-on-death and Totten trust accounts, joint accounts, jointly held real estate, gifts made within one year of death, and certain retirement accounts. Notably, life insurance is not a testamentary substitute in New York. A spouse can be disqualified from the elective share, for example for abandonment or failure to support, and the right can be waived by a valid prenuptial or postnuptial agreement. If the probate estate is short, satisfying the elective share is one of the claims that can reach back against transfer-on-death property within the 18-month window described earlier.

What is the New York family exemption?

Before the estate is distributed, a surviving spouse, or children under 21 if there is no spouse, can take certain property off the top under the family exemption. These items are not counted as part of the estate for distribution. The categories include household furniture and appliances, certain books and family items, one motor vehicle, a cash allowance, and certain farm property. The specific dollar limits are set by statute, so confirm the current amounts when they matter to your estate.

Most full New York probate runs about 9 to 18 months, and when there is real estate to sell, expect 7 to 9 months or more at a minimum. Several fixed deadlines shape the schedule: a 7-month creditor claim period that begins when Letters issue, an inventory of assets generally due within 9 months of Letters issuing, an estate tax return due 9 months after death if the estate exceeds the exclusion, and the up-to-18-month transfer-on-death creditor window.

What are the Surrogate’s Court filing fees in New York?

New York Surrogate’s Court charges a filing fee based on the gross value of the estate, and the same schedule applies whether there is a will (probate) or not (administration), under SCPA section 2402.

The small-estate affidavit filing fee is $1, and certified copies run about $6 each.

What commission does an executor receive in New York?

The executor or administrator is entitled to a statutory commission on a sliding scale: 5 percent on the first $100,000, 4 percent on the next $200,000, 3 percent on the next $700,000, 2.5 percent on the next $4,000,000, and 2 percent above $5,000,000. Real estate that is specifically left to a named person in the will generally does not count toward the commission base, but if the representative collects rent or sells estate real estate during administration, those amounts do count. Probate is also a matter of public record in New York, which some families prefer to avoid through non-probate planning during life.

The realistic path depends on whether there was a will, how title was held, and whether the asset is deeded real estate or a co-op. The most important column below is the third one, because the small-estate route does not transfer real property.

Before the question of how to sell comes the question of whether to sell. Heirs in New York generally have several choices, and the right one depends on the property’s condition, the debts against it, whether you live nearby, and whether other heirs are involved.

How this plays out depends a lot on the specific property: a New York City co-op where the board’s approval process shapes the decision, a Long Island house whose carrying costs are draining the estate, a Westchester or city home near the estate-tax threshold, an upstate cabin inherited by heirs who live out of state, or a sibling buyout where one heir lives in the home and the others want cash. An inherited property also keeps costing money while the estate is open, including mortgage payments, property taxes, insurance, utilities, maintenance, co-op charges or HOA dues, repairs, and the cost of addressing code violations or open permits.

In New York, individually owned inherited real estate usually cannot be sold until a Surrogate’s Court fiduciary has the authority to sign. Most New York sales follow the same sequence:

1. Confirm how title was held. Sole ownership, joint tenancy, tenancy by the entirety, tenancy in common, a transfer-on-death deed, a trust, or co-op shares. This first answer decides everything that follows, including whether probate is even needed.
2. Determine whether probate or administration is needed. Individually owned real estate generally requires a Surrogate’s Court proceeding, and title companies care about this because they will not insure a sale by someone who cannot prove authority to sign.
3. Obtain Letters, or confirm non-probate authority. Letters Testamentary (with a will) or Letters of Administration (without one) give the representative authority to sign a deed. Survivorship and trust property may not need them.
4. Resolve mortgage, liens, taxes, Medicaid, and creditor issues. Common New York blockers include an open mortgage, an estate tax release where one is required, Medicaid estate recovery, co-op arrears, judgments and liens, and open permits or code violations.
5. Confirm who must sign. Depending on the path, that is the executor or administrator, the heirs, a trustee, a surviving owner, or a transfer-on-death beneficiary.
6. Choose how to sell. Compare an as-is sale, a repaired listing, a traditional agent listing, a cash buyer, and a broker match, based on the property’s condition and how quickly you need to close.
7. Close with the required estate and title documents, then distribute the proceeds according to the will, the intestacy rules, or the co-owners’ agreement.

Sometimes, but a sale usually cannot close until the person signing the deed has legal authority. For estate property, that normally means Letters have issued and the fiduciary has authority to sell.

A contract to sell may be possible before the estate is fully closed if Letters have issued and the executor or administrator has authority to sell. But several things control whether it can actually close. The title company will look at whether Letters have issued, whether the estate’s creditor period and debts are resolved, whether an estate tax release is required, and whether anyone has objected in the Surrogate’s Court proceeding. Court approval can also depend on the powers granted in the will and any disputes among heirs. And if the property is a co-op, the board’s approval is a separate bottleneck on top of the estate process.

Does New York have an estate or inheritance tax?

New York has a state estate tax, not an inheritance tax. The 2026 basic exclusion amount is $7,350,000, and the estate-tax return is due nine months after death if the estate exceeds the exclusion. As described earlier, within the narrow phaseout band just above the exclusion, the benefit of the exclusion phases out; once an estate exceeds the exclusion by more than 5 percent, the exclusion is lost entirely and the tax is calculated on the full taxable estate. The tax itself is computed from New York’s estate-tax rate schedule, so a tax professional should run the numbers for a specific estate.

What is the capital gains tax on inherited property in New York?

Receiving inherited property is not taxable income in New York. For capital gains, the property generally receives a stepped-up basis to its fair market value at the date of death under federal law, which New York follows, so if the heirs sell soon after death there is often little or no gain. When the property is sold for more than the stepped-up basis, federal capital gains tax can apply, and New York taxes capital gains as ordinary income at rates up to about 10.9 percent. New York City residents owe an additional city tax. An heir who lives in the inherited home as a primary residence for at least two of the five years before selling may qualify for the federal home-sale exclusion. Because New York is a separate-property state, there is no community-property “double step-up.” For how the federal stepped-up basis works, see our guide to capital gains tax on inherited property.

Does inheriting property in New York trigger a property-tax reassessment?

New York does not have a California-style statewide inheritance reassessment rule. Property tax in New York is a local tax, assessed locally and based on the value of the real property. Exemptions such as STAR are administered locally and depend on eligibility, so a STAR benefit may need to be reviewed or reapplied for based on the heir’s eligibility and the local assessor’s records. Check the assessed value and exemption status with the assessor for the specific city or town.

What transfer taxes apply when an heir sells in New York?

Inheriting the property itself is generally exempt from transfer tax, because New York does not treat a transfer by inheritance as a taxable conveyance. When the heir later sells to a buyer for consideration, several transfer taxes can apply. These rules are price-sensitive and change over time, so confirm the current figures for the specific sale before closing.

Who actually pays each tax can be negotiated in the contract, so treat the “typically paid by” column as the usual custom rather than a fixed rule.

To sell, the title company needs proof of who has the legal authority to sign the deed, and that depends on how the property passes. The signer is the executor or administrator for estate property (with Letters), the trustee for trust property, the surviving owner for survivorship or entirety property, and the named beneficiary for transfer-on-death property. For a co-op, the estate representative acts, subject to board approval. A will may give the executor a power of sale, but title companies and closing attorneys still need to confirm the Letters, the will terms, and any court limitations before closing.

New York real estate closings are also more attorney-driven than in many states, especially for estate, co-op, and title-curative sales, so expect an attorney to be involved in the closing even where one is not strictly required.

Two issues can attach to an inherited New York home and surprise heirs at closing: the estate’s creditor period and Medicaid estate recovery. The first is the estate’s 7-month creditor claim period, which runs from when Letters issue and is one reason title companies care about how far along the estate is. The second is Medicaid estate recovery: if the decedent received Medicaid long-term care at age 55 or older, New York can seek to recover those costs from the estate.

New York recovery is at least a probate-estate issue, and certain non-probate transfers may become relevant depending on the claim and the assets available, so the exact reach should be confirmed with counsel before a sale. Hardship waivers exist but are granted narrowly, so they should not be assumed. Medicaid recovery and the transfer-on-death deed also interact, because the 18-month window lets the estate reach transfer-on-death property when probate assets fall short, so a Medicaid claim can affect that property too. For how Medicaid recovery works in general, see our guide to whether Medicaid can take an inherited house.

If someone who lived in another state died owning New York real property, the heirs generally need a New York ancillary probate or administration proceeding, depending on whether there is a will, in the county where the property sits, even when the main proceeding is happening in the decedent’s home state. Real estate is governed by the law of the state where it sits, so a home-state proceeding does not automatically clear New York title. The main proceeding usually follows the decedent’s domicile, while the New York ancillary proceeding is tied to the county where the New York real property is located. Ancillary proceedings add duplicate filing fees, separate counsel, and often three to six months of additional time.

Deeded New York real estate and New York City co-ops are treated differently here. Deeded real estate follows the New York situs rule above. A co-op is personal property, but in practice many New York City co-op boards still require New York estate authority before they will recognize a new shareholder, so an out-of-state executor can face a similar hurdle for a different reason. The most common way families avoid this is by placing out-of-state real estate in a revocable living trust during life. This comes up constantly with vacation property: an out-of-state heir who inherits a Hamptons house, a Manhattan condo, or an upstate cabin often discovers they have a New York proceeding to handle on top of the one back home. For the general mechanics, see our guides to ancillary probate and selling inherited property out of state.

When several heirs own a property together and cannot agree, the question becomes whether one of them can force a sale, and New York law shapes the answer. Common situations include one heir living in the house while others do not, one heir paying the taxes and upkeep, one heir refusing to sign, or one heir wanting to be bought out.

New York addresses this through the Uniform Partition of Heirs Property Act (RPAPL section 993), first effective in 2019 and strengthened in July 2024 as part of the Heirs Property Protection and Deed Theft Prevention Act. When the property qualifies as “heirs property,” the law replaces the old courthouse-auction approach with a protective sequence. The law applies when the property is held by tenants in common, there is no written agreement among the co-owners governing partition, at least one co-owner acquired title from a relative, the property is used for residential or agricultural purposes, and the statute’s family or relative ownership thresholds are met.

These partition cases are filed in New York Supreme Court, not Surrogate’s Court, and they often run parallel to the estate proceeding. Not every co-owned property qualifies as heirs property, since the statute has specific tests. In most families, a negotiated sale or a buyout is faster and less costly than a forced partition. For how a forced sale works as a concept, see our guide to whether a sibling can force the sale of inherited property.

There is no single right way to sell. The best route depends on the property’s condition, how quickly you need to close, and how complicated the title and estate picture is.

Several errors show up repeatedly on other websites about inherited New York property. Here is what is often said, and the correct New York rule.

• Transfer-on-death deeds (effective July 19, 2024). New York now allows a transfer-on-death deed for real property under Real Property Law section 424, ending its long status as a holdout.
• Heirs Property Protection and Deed Theft Prevention Act of 2024. This act strengthened the Uniform Partition of Heirs Property Act protections for families who inherit property together.
• 2026 estate-tax exclusion. The New York estate-tax basic exclusion amount was set at $7,350,000 for deaths in 2026.