KEY TAKEAWAYS:
A will doesn't avoid probate. Brooklyn homeowners who rely solely on a will may leave their families facing court proceedings before inherited property can be transferred or sold. A trust can simplify property transfers. When properly funded, a revocable trust allows a successor trustee to manage and distribute trust-owned property without probate. The strongest estate plan may include both a trust and a will. A Brooklyn estate planning attorney can help determine which documents best protect your home, reflect your wishes, and support your family's future.
Maybe your Brooklyn brownstone has been in the family for decades. Or perhaps you purchased a condo after years of saving. Either way, your home represents more than property. It's financial security, family memories, and something you hope to pass down to your family members. But what happens to that home after you pass away?
The attorneys at Landskind & Ricaforte Law Group, P.C. understand that you likely want your home to go to your children or grandchildren, but you may not know the best way to protect this important asset after you die. We can help homeowners understand whether a will, living trust, or a combination of both is best for their estate plan. Here, they discuss how trusts in New York can help your family avoid unnecessary legal hurdles and protect what you've built.
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Why Brooklyn Homeowners Should Have a Trust
A will lets you name beneficiaries, appoint an executor, and explain who should inherit your property. However, a will generally doesn't keep a home out of probate, the court-supervised process for administering an estate. In Brooklyn, probate typically takes place through Kings County Surrogate's Court. Your executor may need court authorization before transferring or selling estate property.
A revocable living trust works differently. This type of trust is a legal arrangement that holds assets for designated beneficiaries. When establishing a revocable trust, you can generally serve as your own trustee, continue living in your home, and retain control over trust property during your lifetime.
When properly established and funded, it allows a successor trustee to manage or transfer trust-owned property after your death without probate. That distinction matters when family members need to maintain mortgage payments, handle repairs, or prepare a property for sale.
After you pass away, your successor trustee will begin transferring trust assets in accordance with the terms of your trust. Administration typically takes place outside of probate and provides fewer opportunities for disgruntled heirs or predatory creditors to contest or file claims against your estate.
However, it’s important to remember that because you retain complete control over a revocable living trust during your lifetime, including the ability to modify it, revoke it, or withdraw assets at any time, the IRS and state tax authorities do not consider those assets to have been removed from your personal ownership.
How a Revocable Living Trust Protects Your Brooklyn Home
When you establish a revocable living trust, it can protect your home in some of the following ways:
- Greater privacy. A trust generally avoids making its distribution instructions part of a public probate proceeding, although some property records remain public.
- Continuity during incapacity. A successor trustee can manage trust assets according to the document's instructions if you can no longer handle financial matters.
- More control over inheritance. A trust can establish conditions for distributing property, including arrangements for children who aren't ready to manage a valuable asset.
However, a revocable trust doesn't automatically protect your home from creditors, eliminate estate taxes, or preserve Medicaid eligibility. Those goals require separate planning.
How a Trust Works Differently for Brooklyn Co-ops and Condos
Not every Brooklyn homeowner owns real estate in the same legal form. A condominium owner generally holds title to an individual unit. Transferring that unit into a trust typically involves preparing and recording a new deed. A co-op owner, however, owns shares in a corporation and holds a proprietary lease rather than a traditional real estate deed.
Co-op transfers may require board approval or compliance with building-specific rules. Some buildings restrict trust ownership or impose additional documentation requirements.
Before creating a trust, review how your particular property is owned. A plan designed for a brownstone may not work the same way for a co-op.
What to Consider Before Creating a Trust
When you’re deciding whether to establish a revocable living trust, here are some things to consider:
- How your home is titled. Joint ownership, tenancy by the entirety, and sole ownership can affect what happens at death.
- Who you choose to manage the property. Choose a successor trustee capable of handling bills, maintenance, and beneficiary communications.
- Whether the trust will actually own the home. Signing trust documents alone doesn't transfer property. Proper funding is essential.
- Whether taxes or long-term care will affect your plans. Revocable and irrevocable trusts serve different purposes and carry different consequences.