Inheriting property in New York can feel overwhelming — especially when you are also grieving. Whether you inherited a house in Nassau County, a condo in the city, or a vacant lot upstate, there are legal and financial steps you need to take. This guide walks you through them.
First Steps: Secure the Property
Before anything else, make sure the property is protected:
- Keep the homeowner's insurance active. Contact the insurance company to notify them of the death. If the policy lapses, the property is unprotected against fire, theft, and liability.
- Continue paying the mortgage. If there is a mortgage, payments must continue. Falling behind can trigger foreclosure — even during probate.
- Winterize if vacant. If no one is living in the property, shut off the water, set the heat to at least 55 degrees, and check on it regularly.
- Change the locks if you are concerned about unauthorized access.
Do You Need Probate?
In most cases, yes. New York law requires that real property pass through the estate — either through probate (if there is a will) or administration (if there is no will). You cannot simply record a new deed in your name based on the will alone.
Exceptions - If the property was held in **joint tenancy with right of survivorship**, it passes automatically to the surviving owner. You will need to record a death certificate and an affidavit. - If the property was held in a **revocable trust**, the successor trustee can transfer it without probate. - If the property is a **co-op**, different rules may apply depending on the co-op board's requirements.
Transferring Title
Once the executor or administrator has Letters from the Surrogate's Court, they can execute an Executor's Deed or Administrator's Deed to transfer the property to the beneficiary. This deed must be:
- Properly executed and notarized
- Accompanied by the required transfer tax forms (TP-584 and RP-5217)
- Recorded with the Nassau County Clerk's office
- Supported by an ET-117 (Release of Estate Tax Lien) from the NYS Tax Department
The ET-117 is essential — without it, the county clerk will not record the deed, and no title company will insure the transfer.
Tax Implications
Stepped-Up Basis One significant tax benefit of inherited property is the **stepped-up cost basis**. The property's tax basis is reset to its fair market value at the date of death. This means if the property was purchased for $100,000 decades ago and is worth $600,000 at the date of death, your basis is $600,000. If you sell for $620,000, you only owe capital gains tax on $20,000 — not $520,000.
Property Taxes Nassau County property taxes continue to be due. If the property is no longer an owner-occupied primary residence, you may lose the **STAR exemption**, which could significantly increase the tax bill.
Estate Taxes If the total estate exceeds New York's exemption threshold ($7.35 million in 2026), estate taxes may be owed. See our [Estate Tax Guide](/estate-taxes) for details.
Should You Sell or Keep the Property?
This is a personal and financial decision. Consider:
- Can you afford the carrying costs? Mortgage, taxes, insurance, and maintenance add up quickly.
- Is the property in good condition? Major repairs can be expensive and may not be worth the investment.
- Do multiple heirs share ownership? Co-ownership often leads to disagreements. Selling and splitting the proceeds is frequently the simplest path.
- What is the rental market? If the property is in a strong rental area, keeping it as an investment may make sense.
If you decide to sell, Keystone Pinnacle specializes in purchasing estate properties in Nassau County. They can close quickly, buy properties as-is, and work within the probate timeline. Learn more at our Selling Estate Property page.