A trust is a legal arrangement in which a trustee holds and manages property for the benefit of someone else, under terms you set. In New York, a properly funded trust lets your Brooklyn home and accounts pass to your heirs without going through the Kings County Surrogate’s Court — saving time, court fees, and privacy. Trusts also offer asset protection and Medicaid planning that a will alone cannot provide.
Key trust terms, defined
Grantor: the person who creates the trust and transfers property into it (also called settlor or trustor). Trustee: the person or institution that manages trust property and owes fiduciary duties to beneficiaries. Beneficiary: the person entitled to benefit from the trust. Corpus: the property held in the trust (also called the trust principal or “res”).
Revocable living trust vs. a will
The most common planning tool for Brooklyn homeowners is the revocable living trust — one you control and can change during life. Here’s how it compares to a will:
| Feature | Revocable living trust | Will |
|---|---|---|
| Avoids Kings County probate | Yes (if funded) | No |
| Privacy | Private; not filed publicly | Becomes a public court record |
| Control during life | Full — amend or revoke anytime | Takes effect only at death |
| Upfront cost | Higher | Lower |
| Incapacity coverage | Successor trustee steps in | No (needs a separate POA) |
| Asset protection | None (revocable) | None |
A revocable trust does not save estate tax and does not shield assets from creditors — its value is probate avoidance, privacy, and incapacity planning.
Irrevocable trusts and Medicaid Asset Protection Trusts
To actually protect assets — from estate tax or from nursing-home costs — you need an irrevocable trust, which you cannot freely amend or revoke.
A Medicaid Asset Protection Trust (MAPT) is an irrevocable trust used to shelter the family brownstone so it doesn’t have to be spent down before qualifying for Medicaid long-term care. The catch is New York’s five-year lookback for institutional Medicaid: transfers into the trust must generally be made more than five years before applying for nursing-home coverage. For Brooklyn families whose main asset is a townhouse worth far more than they paid, planning early is essential.
New York trust types
| Trust type | Revocable? | Primary use |
|---|---|---|
| Revocable living trust | Yes | Probate avoidance, incapacity |
| Irrevocable trust | No | Estate tax + creditor protection |
| Medicaid Asset Protection Trust | No | Shelter home from Medicaid spend-down |
| Supplemental Needs Trust (EPTL 7-1.12) | Varies | Provide for a disabled beneficiary without losing benefits |
| Testamentary trust | Created by will | Trust that springs up at death |
A Supplemental Needs Trust under EPTL 7-1.12 lets you provide for a child or relative with disabilities while preserving their eligibility for Medicaid and SSI — important for families across Flatbush and Bensonhurst caring for a loved one.
Why funding a trust matters
A trust controls only what’s titled in its name. An unfunded trust — one you signed but never transferred assets into — does nothing; those assets still go through probate. To fund a Brooklyn revocable trust you must:
- Deed your house into the trust (a new deed recorded with the NYC Register / ACRIS for Kings County)
- Retitle bank and brokerage accounts
- Update beneficiary designations where appropriate
Skipping the funding step is the single most common trust mistake we see.
Trustee duties under New York law
A trustee is a fiduciary held to the Prudent Investor Act, EPTL 11-2.3, requiring them to invest and manage trust assets with care, skill, and diversification, putting beneficiaries’ interests first. Trustees must keep records, account to beneficiaries, and avoid self-dealing. Choosing a trustworthy, organized successor trustee is as important as the trust document itself.
The Brooklyn probate-avoidance angle
New York has no transfer-on-death deeds for real property, so a Brooklyn home cannot pass by a beneficiary form the way a bank account can. That makes a funded revocable trust the cleanest way to move a Park Slope or Brooklyn Heights house to your heirs without opening a Kings County estate. For families with a multi-family townhouse generating rental income, a trust also lets a successor trustee keep collecting rent seamlessly if you become incapacitated — no court guardianship needed. Compare this to the will path in our Kings County probate guide.
Frequently asked questions
Do I need a trust if I already have a will? Often yes. A will still sends your Brooklyn estate through Kings County probate; a funded revocable trust avoids it and adds incapacity protection. Many plans use both — a trust for the house and accounts, plus a “pour-over” will as backup.
Will a revocable trust lower my New York estate tax? No. A revocable trust is fully includable in your taxable estate. To reduce NY estate tax you need irrevocable structures — see our estate taxes guide.
Can my brownstone stay in a trust and still get a stepped-up basis? Assets in a revocable trust generally receive a stepped-up cost basis at death, just like assets held outright. Irrevocable trusts require careful drafting to preserve the step-up — a key reason to work with a NY attorney.
Plan your trust with a New York attorney
Whether you need probate avoidance or Medicaid protection, the structure has to fit your family and your Brooklyn property. Book a 30-minute consultation with Russel Morgan to find the right trust.
Have a question about your estate?
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