About Revocable Trusts in New York Versus Nevada
Discover key differences between establishing revocable trusts in New York and Nevada, focusing on tax implications, asset protection, and more.
At a high level, revocable trusts in New York versus Nevada do the same core jobs: avoid probate, keep things private, and provide smooth management if you’re incapacitated. The big differences show up in state taxes, property rules, and execution formalities—and they matter depending on where you live and what you own.
For revocable trusts in New York versus Nevada, the everyday benefits are similar—probate avoidance, privacy, and control. The real divergence is the state law scaffolding around your trust: signing rules, TOD deeds, marital-property regimes, and the tax climate.
What’s the Same for Trusts in New York Versus Nevada
Probate Avoidance
Titling assets to a revocable trust keeps most transfers out of court in both states, which can save time, cost, and hassle for your heirs. (This is especially valued in busy New York Surrogate’s Courts.)
Control
You can amend or revoke a revocable trust at any time. It’s your plan, your assets, your rules—until incapacity or passing. New York’s statute expressly contemplates written amendment/revocation requirements.
Privacy
For almost all the assets in a revocable trust, probate isn’t necessary. Keeping yourself out of court keeps the details about your estate private (because probate is public record).
Transfer-on-Death (TOD) Deeds
New York now allows TOD deeds for real estate (effective July 19, 2024). That gives New Yorkers a non-probate option for a house, sometimes instead of a revocable trust—though trusts still shine for multi-asset coordination. Nevada has long offered TOD deeds via statute.
Execution: New York requires a lifetime trust to be in writing and either acknowledged like a deed or signed with two witnesses (with at least one trustee also acknowledging if the grantor isn’t the sole trustee). Nevada is more flexible (writing and signature; no universal two-witness rule), though notarization is standard practice.
Property: Nevada is a community-property state; New York is not (it’s an equitable-distribution state). For married couples, this affects how appreciation and income are characterized and how you title assets in your trust(s). In Nevada, married couples often use community-property trust planning; in New York, separate vs. marital property rules drive design.
State taxes: Nevada imposes no state estate or inheritance tax and no state income tax, which is great for long-term planning. New York is different. The state, by contrast, has a separate estate tax (with the well-known “cliff”). (Although no inheritance tax.)
Where Nevada Shines (and Doesn’t)
Helps
If you’re becoming (or already are) a Nevada resident, Nevada’s no-tax environment can pair nicely with trusts you’ll later make irrevocable (for asset-protection or multi-generational planning). It also offers modern trust statutes and easy TOD deeds.
Doesn’t Help (Much)
If you’re a New York resident keeping a revocable trust, having the trust in Nevada won’t eliminate New York’s estate-tax exposure at death if you remain a New York resident with New York-situs assets.
A Few Tips
Sign Correctly
Use New York’s EPTL 7-1.17 execution formalities if you’re in New York.
Use TOD Deeds Thoughtfully
A TOD deed can be perfect for a single property; a revocable trust still coordinates many accounts, real estate in multiple states, and incapacity planning. (NY and NV both allow TOD deeds.)
Mind the Property System If Married
Community-property nuances in Nevada, equitable-distribution in New York—structure your trust(s) to fit.