Land Contract issues in case of death

[linuxgirl]

If someone in NY state has land contracts out @ the time of his/her death, is the money coming in from those LC's considered personal or real property?

 

[jharris352]

The money is personal property. If the land contract defaults and the land comes back to you then it is real property.

 

[dee_dub]

The estate of the deceased still retains legal title to the lands, and still has equity in the lands until the land contracts are paid off. That is real property. The income on the contract is personal property, but it might have some kind of peculiar standing since what it really represents is liquidation of the equity in the property.

Sounds to me like you might have a problem where the real property belongs to someone, and it is being converted into personal property that belongs to someone else?