What heirs need to know before selling or keeping a loved one's real estate asset
WESTCHESTER COUNTY, NY / ACCESS Newswire / July 31, 2025 / Inheriting property can be both a meaningful gift and a significant responsibility. Westchester County elder law attorney Lauren C. Enea, Esq., partner at Enea, Scanlan & Sirignano, LLP in White Plains and Somers, N.Y., recently shared her insights on how understanding the legal and financial impact of inherited real estate can help families preserve assets and avoid unexpected pitfalls.
"Whether it's a family home or investment property, inherited real estate often comes with emotional and financial complexities," said Lauren C. Enea, who focuses her practice on wills, trusts and estates; Medicaid planning; special needs planning; and probate/estate administration. "Beneficiaries need to be aware of how capital gains taxes and the step-up in basis work to make strategic choices - whether they plan to sell, rent, or retain the property."
In her recent article, How is Inherited Property Taxed?, Ms. Enea explains important considerations for heirs inheriting real property:
Step-Up in Basis: Inherited property typically receives a "step-up" in cost basis, meaning its value is adjusted to the fair market value on the date of the original owner's death. This step-up can significantly reduce - or even eliminate - capital gains taxes if the property is later sold.
Capital Gains Tax: If the inherited property is sold, the beneficiary may owe capital gains tax on the difference between the stepped-up basis and the sale price. The timing and manner of the sale can directly impact how much tax is owed.
Income Tax Considerations: While the act of inheriting property is generally not a taxable event, any rental income generated from the property is taxable and must be reported. New landlords should be aware of their responsibilities for income reporting and potential deductions.
Estate Tax Implications: For higher-value estates, inherited property may be subject to federal or state estate taxes. Proactive estate planning can help reduce the overall tax burden on heirs and protect generational wealth.
Navigating Co-Ownership: When multiple beneficiaries inherit a single property, disagreements and confusion can arise over its use, maintenance, or sale. Legal guidance is often necessary to clarify rights and responsibilities, and to avoid potential conflicts.
"Inherited property can be a wonderful asset, but it's important to approach it with a clear understanding of the tax implications and long-term impact," added Ms. Enea. "With thoughtful planning and the right legal guidance, families can make the most of their inheritance and preserve it for future generations."
An active member of the local bar associations, Ms. Enea holds several leadership positions within various legal organizations. She was honored with the 2025 Shining Star Award from the Elisabeth Haub School of Law at Pace University and has been named to the Super Lawyers Rising Stars list (2021-2024) and Best Lawyers: Ones to Watch (2023-2025). Ms. Enea serves as president of the Board of Directors for CAREERS Support Solutions, a nonprofit that helps individuals with disabilities secure meaningful employment in Westchester, Putnam, and Dutchess Counties. She is also a member of the Pace Women's Justice Center Advisory Board, Friends of Gail.
Enea, Scanlan & Sirignano, LLP is located at 245 Main Street, Suite 500 in White Plains and 339 Route 202, Suite 100 in Somers. For more information or to schedule a consultation, call 914-948-1500 or visit www.esslawfirm.com.
About Enea, Scanlan & Sirignano, LLP
Enea, Scanlan & Sirignano, LLP is an AV preeminent rated elder law firm with offices in White Plains and Somers, N.Y. The practice concentrates on Elder Law; Medicaid Planning; Nursing Home and Home Care Applications; Estate Tax Planning; Wills, Trusts and Estates; Guardianships; Estate Litigation; Supplemental Needs Trusts; and Special Needs Planning. Enea, Scanlan & Sirignano, LLP serves Westchester, Rockland, Putnam, the Bronx, Manhattan, Long Island and Queens and is committed to providing the highest quality legal services to seniors, the disabled and their families. Visit the firm online at www.esslawfirm.com.
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SOURCE: Enea, Scanlan & Sirignano, LLP
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