—Untrusted in the Bronx
“The short answer to this question is that New York State allows a co-op board to impose any rules, conditions and restrictions they wish with respect to ownership and occupancy of an apartment,” says attorney and former Queens Assemblywoman Ann-Margaret Carrozza.
“The board's contractual basis for refusing this request is that the proprietary lease or occupancy agreement likely requires owner occupancy. By signing this, you agreed that you would remain the owner. Even though the proposed trust is revocable, it is still not you. Therefore the board can legally refuse your request—as long as the refusal is universally applied.
“That being said, an ever-increasing number of shareholders have been requesting approval for trust ownership in recent years. The advantages of trust ownership are probate avoidance, as well as asset protection in the event of a long-term illness.
“The trend is that boards are moving in the direction of allowing trust ownership.