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Transferring HDFC Co-ops by Living Trust

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Transferring HDFC Co-ops by Living Trust

Postby TBeau » Sun Apr 12, 2015 7:47 pm

I am helping a family member figure out how to pass on her HDFC co-op to her children after she dies. I am doing some research and some of the HDFC issues seem a little confusing.

My mother used a living trust for her house so that she could avoid probate when she died. I wanted to help my family member do the same with her HDFC co-op. I contacted someone on the HDFC board about how to do this, and I was told that the board didn't allow such transfers, only by will. I looked at the stock certificate and proprietary lease and didn't see any specific language forbidding living trusts, but I assume such restrictions must be in the specific co-op board's by-laws.

I didn't want to just give up based on initial resistance from one person, but I wanted some feedback on how to proceed and whether this was a waste of time. I'd really like to help my family member and her children transfer the apartment with as little grief as possible.

I know the other option that would normally be possible, which is joint ownership of the apartment with her children, also is not possible here because the stock certificate and lease make it clear that anyone whose name is on the apartment must also be residing at the apartment, and her children currently don't reside there.

Also, I know there are income requirements that her children would have to meet in order to be allowed to keep the apartment, correct? If I understand right, it would have to be the median income of the area? Both of her children make considerably more than their mother and are not low income by any normal definition, but the area the apartment is located in is pretty gentrified now so I was wondering if there is a cap on income, because I imagine based on how the area is lately the median income could actually be pretty high.

I hope my questions are clear, and any help you could provide would be great.

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Re: Transferring HDFC Co-ops by Living Trust

Postby TenantNet » Sun Apr 12, 2015 8:15 pm

Unfortunately this is the wrong place. HDFC's are co-ops, not rental buildings and it's not something we really cover, and most certainly not the issues of passing along shares.

You really should speak with an attorney that has experience not only in co-ops, but in HDFCs.
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Re: Transferring HDFC Co-ops by Living Trust

Postby BubbaJoe123 » Sun Apr 19, 2015 10:38 pm

You do need to get a lawyer's opinion on this. One comment I can make - the median income used for many housing programs (don't know about the one for your relative's building) is actually for the NYC metro area, so changes in a particular neighborhood might not be particularly relevant.

That said, please follow TenantNet's advice and find a lawyer with experience in these matters. Contacting the lawyers who advertise on this site might be a place to start. They may not be the right person, but they could probably refer you to somebody who does focus in these areas.
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