Articles Tagged with #KloseAssociates

In past links, I have discussed “Tenancy by the Entirety,” where a deed to a Husband and Wife is presumed to convey the property to each as equal and inseparable joint tenants.   That means, one may not convey without the other, and creditors may not partition their interests.  Indeed, when one tenant by the entirety dies, the other inherits the real property regardless of what any Last Will and Testament states.   Despite this seemingly well established rule, it’s still litigated.

The Second Department rendered an interesting decision in Ciaccio v. Wright-Ciaccio, 2022 NY Slip Op 07215, decided December 21, 2023.   The decedent’s children claimed an interest to their father’s property where the father had, prior to his death, executed and recorded a deed adding his current wife (the children’s stepmother).    Although not critical, the deed mentioned that the stepmother was designated as “His Wife.”

In affirming the lower Court’s ruling, the court reaffirmed that the designation in the Deed as “His Wife” created a documented Tenancy by the Entirety and therefore, the children’s allegations that (1) the father “intended” only to create a Tenancy in Common had no merit and (2) that the stepmother destroyed a Will evidencing the father’s intention to give the children an interest in the property had no relevance given that the father’s interest in the property transferred to his wife immediately upon the his death by operation of law.

Corporate Compliance UPDATE—(January 10, 2024).

LLCs have been a favored entity for real estate for many years in New York.  Times are changing.  For those of you who own a beneficial interest in a New York Limited Liability Company, you need to contact your attorney.  Effective January 1, 2024, LLCs must comply with New York’s new LLC Transparency Act, which will create a database of the beneficial owners of Limited Liability Corporations that is accessible to government agencies and law enforcement.   According to our Governor,

“For far too long, bad actors have been protected by the loose disclosure requirements of LLC ownership.  Wage theft, money laundering, tenant mistreatment and other unlawful activity has been masked by the opaque ownership structure of an LLC. The new LLC Transparency Act will give law enforcement and State regulators the tools they need to hold bad actors accountable.”

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