successor in interest


Also found in: Acronyms.

successor in interest

An owner of property after the one being described.

Example: Jim executed a mortgage on property that was never paid off, but which never showed up in title searches until recently, despite the fact the property had been sold several times. All of Jim's successors in interest were in danger of losing their property to a foreclosure by the mortgage holder.

References in periodicals archive ?
Note: Because the partnership interest must be included in the decedent's gross estate at fair market value (FMV), a buy/sell agreement that results in the sale of the partnership interest for less than FMV may cause the deceased partner's successor in interest (e.g., his or her estate) to receive an amount of cash that is less than the estate tax assessed on the transferred interest.
A two-person partnership does not terminate upon a partner's death if the deceased partner's successor in interest (usually the estate) continues to share in the partnership's profits or losses (Regs.
When the interest is retired, the partnership books should reflect the elimination of the deceased partner's interest in capital and the establishment of a payable to the partner's successor in interest. All subsequent payments made to retire the interest should reduce the payable.
Partnership tax returns should be filed as long as payments are being made to the deceased partner's successor in interest.
In addition, the successor in interest receives a step-up in at-risk basis equal to the amount of the step-up to FMV (if any) at the date of death (or alternate valuation date) under Sec.