In New York State, owning a house or an apartment is a major accomplishment. It is just as important to think about how to protect that investment and make sure your family is protected if you pass away. One of the most valuable legal tools for this is a trust.
1. Avoiding probate
Probate is the Surrogate's Court proceeding that proves a will and appoints the executor (if there is no will, an administrator is appointed instead). In New York either process can be expensive, slow, and public. Placing your house or apartment in a trust means more than signing the trust document (EPTL 7-1.18). For real estate, the deed to the trust must be recorded. Co-op shares are re-registered in the trust's name, not deeded (see Matter of Risk, cited in the 7-1.18 commentary). Assets properly in the trust do not go through probate.
2. Protection from creditors
A revocable trust avoids probate but gives no creditor protection — under EPTL 7-3.1, a trust you create for your own benefit is void as against your own creditors. Shielding the home from creditors requires a properly structured irrevocable trust set up well before any claim arises; assets inside such a trust are generally not subject to the claims of your later creditors, which gives your family additional security.
3. Privacy and control
Beyond avoiding probate and deterring creditors, a trust keeps your affairs private. Probate files are public; trust terms are not. Your property passes discreetly, on your terms, to the people you choose.
If you own a home or apartment in New York and want your family spared the probate process, a trust is one of the smartest steps you can take. Read our guide to avoiding probate in New York, or speak with us about setting up the right trust.
