Many Brooklyn families come to us thrilled that they signed a revocable living trust, only to learn the document does almost nothing until it is funded. This Q&A answers the worries we hear most often in Kings County.
I signed my trust. Isn’t that enough?
Unfortunately, no. A revocable living trust governed by New York’s EPTL Article 7 only controls the assets actually titled in its name. An unfunded trust is like a safe with nothing inside it. If your Park Slope co-op or your bank accounts are still in your individual name when you pass, they may still pass through probate in the Kings County Surrogate’s Court under the SCPA. Funding is the step that delivers the probate-avoidance benefit people sign up for.
What does “funding” actually mean?
Funding means retitling assets into the name of your trust or naming the trust as beneficiary where appropriate. For most Brooklyn clients this includes:
- Real property: A new deed transferring your Brooklyn home or brownstone into the trust, recorded with the City Register for Kings County.
- Bank and brokerage accounts: Re-registering accounts in the trust’s name through your bank or custodian.
- Business interests: Assigning LLC membership interests or closely held shares to the trust.
Are there things I should NOT put in the trust?
Yes, and this trips people up. Retirement accounts like IRAs and 401(k)s generally should not be retitled into a living trust, because that can trigger income tax. Instead, you coordinate beneficiary designations. Life insurance also usually passes by beneficiary designation. A common Brooklyn co-op wrinkle is that many co-op boards must approve transferring shares and the proprietary lease into a trust, so check your building’s policy before assuming it can be done.
Does funding a revocable trust save estate taxes?
No. This is a frequent misconception. A revocable living trust avoids probate and provides incapacity planning, but it offers no estate or income tax savings; the assets remain part of your taxable estate. For 2026, the New York estate tax exclusion is $7,350,000, with a “cliff”: estates exceeding 105% of that amount (about $7,717,500) lose the exclusion entirely. If tax planning or Medicaid planning is your goal, an irrevocable trust, subject to the five-year look-back for Medicaid, is a different tool worth discussing.
What happens if I buy a new Brooklyn property later?
Funding is not one and done. Every time you acquire a new account or piece of real estate in Bay Ridge, Williamsburg, or anywhere else, you must title it in the trust or it falls outside the plan. Many families pair the trust with a pour-over will as a safety net for anything left out, but relying on that net defeats much of the purpose.
How do I keep track of everything?
Keep a written schedule of trust assets and revisit it whenever your finances change. Confirm beneficiary designations on retirement and insurance accounts align with your overall plan. A short annual review prevents the surprise of an asset stranded outside the trust.
Speak with a New York attorney
Funding mistakes are common and quietly undo good planning. Because deeds, co-op rules, and tax thresholds in New York are unforgiving, consult a qualified New York estate planning attorney familiar with Brooklyn before retitling assets, so your trust works the way you intended.
Have a question about your estate?
Talk it through with Russel Morgan — free 30-minute consult.