Create a Living Trust in New York

A living trust in N.Y. allows you to place your assets into a trust but still use them during your lifetime. Your beneficiaries inherit them after your death. A revocable living trust (sometimes known as an inter vivos trust) provides different advantages.

Find out more about Living Trusts

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create a living trust in new york

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Updated on: February 6, 2024
Read time: 4 min

A living trust in New York allows you to place your asset into a trust but still use them during your lifetime. Your beneficiaries inherit them after your death. A revocable living trust (sometimes known as an inter vivos trust) provides many advantages that may make it a desirable part of your estate planning process.

Living trusts in New York

A New York living trust is a legal document created by the grantor, the person putting assets into the trust. The trust is established to own your assets during your lifetime. The plan is usually to transfer as many of your assets into the trust as possible, but some assets do not qualify, such as life insurance and retirement accounts. Once the assets are in the trust, they are managed for your benefit while you are alive. The trust is managed by a trustee whom you choose. You can select anyone to be your trustee, but it is most common to simply choose yourself so that you can have complete control. You then also name a successor trustee who will step in as trustee after your death. Once you have passed, the trustee continues to manage and protect your assets and then distributes them to your beneficiaries. Your living trust is revocable, which means you can make changes to it whenever you like and also have the option of deciding to cancel it all together. An irrevocable living trust is unchangeable from the date of its creation.

A living trust New York allows you to completely bypass probate for the assets that are in the trust (this is why you want to place as many assets into it as possible). Probate is the court procedure in which a will is approved and put into force. The court can take many months to approve the will and the process also involves some expense. Your executor can charge a fee and there are attorney fees and court costs. None of the assets in the will can be distributed until probate concludes, which can leave your heirs in difficult financial straits. New York has not implemented the Uniform Probate Code, so the procedure is not simplified. If your estate is worth less than $30,000 at your death, it qualifies for a small estate administration procedure which may be less expensive than establishing a trust.

A trust does not need to be probated and because of this you can direct that your assets be distributed immediately upon your death if you want. A trust also allows you to manage assets in any state, avoiding multiple probate cases in various states.

Do I need a living trust in New York?

There are many benefits stemming from creating a living trust in New York. A trust places you squarely in control of your assets during your life, even though they are technically owned by the trust. You continue to do everything you normally would—spending money however you want, living at home, giving gifts, or selling assets. You also maintain control over your assets after your death. The trustee continues to manage them until the chosen distribution dates you have set up. You can pass your assets to your beneficiaries right away, or you can schedule distribution for major birthdays or other events. A will distributes assets once probate is concluded and does not provide this long-term management option.

Your revocable living trust protects you should you become mentally incapacitated. All of your assets are already controlled, owned, and managed by the trust and a conservatorship proceeding is likely unnecessary. While a durable power of attorney can be rejected, a trust cannot be. Your financial life is protected by the trust.

A living trust gives you privacy that is not an option when you use a will. A will passes through probate and becomes public record. A trust is not revealed to the public and your beneficiaries, assets, and specifics of the trust remain completely private. A trust is also less likely to be contested and more difficult to contest than a will, offering peace of mind.

Living trusts and estate taxes in New York

Living trusts do not avoid estate taxes. New York applies estate tax to estates that are valued over $2.06 million and the federal government applies it to estates in excess of $5 million. It is possible to avoid estate tax using a QTIP trust (also known as a marital trust or AB trust) which is a specially written trust that passes assets from a deceased spouse to the surviving spouse without incurring any tax. A living trust cannot protect your assets from Medicaid and also does not shelter assets from creditors, but may make it harder for creditors to find your assets.

How to create a living trust in New York

To create a living trust in New York, create your trust document and sign it in front of a notary public. The final step is to transfer ownership of assets to the trust and the trust is not effective until this occurs. A living trust is an option that can provide many benefits not available with other estate planning vehicles. A trust might be a good fit for you.

Ready to create a New York living trust? LegalZoom can help you create a living trust online in three simple steps. Get started by answering a few simple questions. LegalZoom will review your answers and mail your complete living trust package to you.

Find out more about Living TrustsStart Now
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This article is for informational purposes. This content is not legal advice, it is the expression of the author and has not been evaluated by LegalZoom for accuracy or changes in the law.

48 days ago
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Grateful to Patti Green

Patti Green helped me so much to finish my order. She was very patient and pleasant with me and guided me so well with my living trust. She made it clear and explained things that I could understand to finish this. She is an asset to your company and I would recommend her with excellence

CU
50 days ago
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I had no Idea what to do to update my…

I had no Idea what to do to update my Living Trust. They answered all my questions and they also helped me get info I did not know I needed.

Bryan Q
56 days ago
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Living Trust Premium

Our Representative, Stormy was fantastic! She stayed with us through the whole process. She was very helpful and thorough.

sremeikis
64 days ago
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I spoke to the representative today about a Trust...

I spoke to the representative today regarding a question about an existing Living Trust. She was very helpful - told me exactly what I needed to know and how to accomplish it. As a representative in the Financial field I guide clients all the time on where to get documents done right - and its always LegalZoom - easy and effecient!

Gareth
66 days ago
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LegalZoom

I was impressed by the user-friendly interface and the outstanding support I received while creating a Revocable Living Trust. The ability to connect with support representatives in real time to address my questions was incredibly valuable. For those looking to establish a straightforward trust, I can highly recommend LegalZoom.

TDM
72 days ago
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Rida has been very helpful with respect…

Rida has been very helpful with respect o guiding me through the process of properly revising the Living trust for my elderly parents. His patience has been exemplary.

Frantz Michel
80 days ago
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Elizabeth Tisdale

Elizabeth Tisdale, knowledgeable,been having problems with the forms in my living trust,for the past two weeks and had to pay every time, Elizabeth was patient with me and explained every detail until it was corrected,she get my 5 stars

MARIA CORONA
80 days ago
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Taking the Initiative

Taking the initiative to do the info. research on our living Trust...set up back in 2016..Made the call an efficient, as well as a pleasant experience. Very thorough and friendly. Set up our atty consultation Thanks for great service!

Vicki Switzer
87 days ago
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Carmen was so patient with me

Carmen was so patient with me! Thank you for all your direction and guidance with my living Trust! Great job!

Tina Garcia
90 days ago
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Tammy was wonderful and very…

Tammy was wonderful and very knowledgeable. It's because of her that I am going to open a living trust with legal zoom. She was great. Thank You

Erin
98 days ago
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Pleasant Experience

Patience and weel given explanation about the process of how a "Living Trust" & "Deed" works after transitioning and guidance on how to contact an attorney whenever I need legal advice.

Sharron Martin
98 days ago
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Excellent LegalZoom Attorney

The LegalZoom attorney was extremely helpful in the "walk thru" assistance as I prepared the Living Trust document. The service was excellent.

customer
107 days ago
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Happy with my initial contact with Legal Zoom

Rebecca fully answered my questions about creating a living trust. She is friendly and professional, and with my mind at ease, I am looking forward to starting this process with Legal Zoom. I am confident that this will be the best route for me to take to make things a lot easier for my family when I'm gone. (And, easy for me!) I plan to be in touch in the next several weeks. Thanks, Rebecca!

Carol
125 days ago
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Michelle very professionally guided me…

Michelle very professionally guided me with her knowledge and amazing patience through the entire process of setting up my Living Trust. I am so relieved and grateful for her help. I have used LegalZoom before and you are my go to for legal advice. Thank you again Michelle.

Paula Bateman
133 days ago
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Quality Staff

I needed to revise my entire living trust and had put it off for years. Your staff member Eden walked me through the process with such patience and concern. Had I known it would be so easy, I would have never put it off this long. A testament to you quality staff.

Ady Filipescu
142 days ago
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Really great job in guiding me to…

Really great job in guiding me to finish my living trust .

Ronnie Ball
148 days ago
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5 Stars

5 Stars – Outstanding Customer Service from Tammy at LegalZoom I had the pleasure of working with Tammy from LegalZoom regarding my living trust documents, and I couldn't be more impressed. She was professional, patient, and incredibly knowledgeable. Tammy took the time to walk me through every step, answered all my questions clearly, and made a complex process feel simple and stress-free. Her attention to detail and genuine care made all the difference. LegalZoom is lucky to have someone like her on their team. Thank you, Tammy!

Cn
148 days ago
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Ease and help of making changes to my…

Ease and help of making changes to my living trust. LegalZoom rep walked me through the process without any difficulties. Really like working with LegalZoom.

Gregory Bechtol
155 days ago
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Enjoyed working with Kevin to finalize…

Enjoyed working with Kevin to finalize our Living Trust language. His knowledge on this product certainly increases our confidence in the viability of the final document.

JOHN in CALIFORNIA
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