New York Trust Law: What Every Trust Holder Needs to Know

New York does trust law differently than almost every other state. Instead of a single unified trust code, the rules are spread across multiple statutes. Trustee compensation follows a statutory fee schedule with specific dollar amounts per thousand rather than a "reasonable compensation" standard. Accountings go through Surrogate's Court in a judicial process rather than simple reports mailed to beneficiaries. And the state has not adopted the Uniform Trust Code, despite years of proposals to do so.

If you have a trust governed by New York law, or you're serving as trustee of a New York trust, this guide explains the rules that actually apply to you: how a valid New York trust is created and funded, what trustees are required to do, how trustee pay works under the statutory schedule, how the accounting system operates, and how New York taxes trusts.

This guide applies to both revocable and irrevocable trusts in New York, though many reporting and compensation rules are most relevant to irrevocable trusts being actively administered.

Where New York trust law lives

This is where it gets complicated. New York trust law is not in a single unified code. It spans three major statutes:

The Estates, Powers and Trusts Law (EPTL) covers substantive trust law. Article 7 (sections 7-1.1 through 7-8.1) handles trust creation, validity, and administration. Article 11 (sections 11-1.1 through 11-2.4) covers fiduciary powers and the prudent investor standard. Article 10 (section 10-6.6) covers decanting.

The Surrogate's Court Procedure Act (SCPA) handles the procedural side. Article 22 (sections 2201 through 2213) covers accounting, and Article 23 (sections 2307 through 2313) covers compensation.

The Civil Practice Law and Rules (CPLR) provides the statutes of limitation.

Because the rules are scattered, New York trustees routinely miss obligations that live in a statute they've never heard of. The rest of this guide walks through them by topic.

Does New York have a Uniform Trust Code?

No. New York is one of the minority of states that has never adopted the Uniform Trust Code (UTC). A proposed New York Trust Code (a new EPTL Article 7-A) has been introduced in the legislature repeatedly, but it has not been enacted as of mid-2026. If it eventually passes, it would modernize and consolidate the scattered provisions above. Until then, you're working with the current fragmented system.

This matters more than it sounds. Most trust guidance published online is written against the UTC, so it quietly assumes rules New York doesn't have:

• There is no general duty to notify beneficiaries that a trust exists or has become irrevocable (unlike the UTC and states like California and Florida).
• Trustee pay is a statutory schedule, not "reasonable compensation."
• Trusts default to irrevocable, the opposite of the UTC default.
• Accountings are judicial, through Surrogate's Court, rather than informal reports.

If an article doesn't say it's about New York specifically, assume its answers may not apply to your trust.

How to create a valid New York trust: execution and funding

New York is stricter about trust formalities than most states, and the requirements trip up do-it-yourself trusts regularly.

Execution requirements. Under EPTL section 7-1.17, a lifetime trust must be in writing and signed by the person creating it and, unless that person is the sole trustee, by at least one trustee. The signatures must be either:

• acknowledged before a notary in the manner required for recording a deed to real property, or
• signed in the presence of two witnesses, who must also sign the trust instrument.

A trust document that was signed but never notarized or witnessed this way has an execution problem, and that's not a technicality you want discovered after the creator has died.

Amendments and revocations follow the same formalities. Under EPTL section 7-1.17(b), any amendment or revocation must be in writing, executed by the person authorized to make it, and acknowledged or witnessed the same way (unless the trust document itself sets a different procedure). It takes effect on the date it's executed. If the person amending isn't the sole trustee, written notice should go to at least one other trustee within a reasonable time, though a missed notice doesn't invalidate the change. A trustee who acts in good-faith reliance on the existing trust document before actually receiving notice of a change is protected.

A New York trust can also be revoked by will. EPTL section 7-1.16 allows a revocable lifetime trust to be revoked or amended by an express direction in the creator's will that specifically refers to the trust or the provision being changed. Generic will language doesn't do it; the reference must be specific.

Funding is a legal requirement, not a formality. Under EPTL section 7-1.18, a lifetime trust is valid only as to the assets actually transferred to it. Merely listing assets in the trust document (a "recital") does not transfer anything. And where the creator is the sole trustee, the statute is explicit about what a transfer means: assets capable of registration (real estate, stocks, bonds, bank and brokerage accounts) must actually be re-registered in the name of the trust or trustee, or the deed recorded; other assets need a written assignment describing the asset with particularity.

In practice, the signed-but-unfunded trust is one of the most common estate planning failures in New York. If you're not sure your trust was funded properly, work through a trust funding checklist, and see our guide on adding assets to an existing trust.

New York trustee duties and responsibilities

Because the duties are spread across multiple statutes and significant case law, New York doesn't have the neat, numbered duty list you find in UTC states. But the core obligations are clear, and courts enforce them strictly. (For the general job description that applies in every state, start with trustee responsibilities explained; everything below is New York specific.)

Invest prudently. New York adopted its version of the Prudent Investor Act as EPTL section 11-2.3, effective January 1995. You must exercise "reasonable care, skill and caution," pursue an overall investment strategy that considers eight specific factors, and you can delegate investment decisions to qualified professionals consistent with that standard. If you're a professional trustee (a bank, trust company, or paid investment advisor), you're held to a higher standard: the diligence of "prudent investors of discretion and intelligence having special investment skills."

Act with undivided loyalty. You must manage the trust in the beneficiaries' interest and avoid self-dealing. New York courts treat conflicted transactions especially strictly: a trustee who buys from, sells to, or otherwise transacts with the trust personally risks having the transaction unwound without much sympathy for whether the terms seemed fair.

Treat beneficiaries impartially. Income beneficiaries and remainder beneficiaries have opposing interests, and the trustee must balance them rather than favor one side. The unitrust election under EPTL section 11-2.4 (covered below) exists partly to make that balance easier.

Keep records and segregate property. EPTL section 11-1.6 and common law require proper record-keeping and keeping trust property separate from your own. Commingling trust and personal assets is one of the fastest ways for a trustee to end up personally liable. Our trust record-keeping guide covers what a defensible file looks like.

Account when called on. Under SCPA Article 22, a trustee can be compelled to account to Surrogate's Court, and prudent trustees account voluntarily at milestones (details in the next section).

Furnish the annual commission statement. If you're taking commissions, SCPA section 2309(4) conditions them on an annual statement to income beneficiaries (details two sections down).

You cannot contract out of these duties. Under EPTL section 11-1.7, any attempt in a will or trust to exonerate an executor or trustee (including the trustee of a lifetime trust) from liability for failing to exercise reasonable care, diligence and prudence is void as against public policy. Exculpation clauses can soften some risks, but in New York they cannot waive the basic duty of care, and a beneficiary can challenge an overbroad clause without putting their own interest in the trust at risk.

Serious failures get trustees removed. Under SCPA section 711, a co-fiduciary, creditor, or any person interested in the trust can petition Surrogate's Court to suspend or remove a trustee for, among other grounds: wasting or improperly applying trust assets, making unauthorized investments, dishonesty or unfitness, willfully disobeying a court order, or moving trust property out of state without court approval.

TrustHelm tip: TrustHelm tracks your trustee duties based on New York's specific requirements, including the annual statement obligation tied to your commission entitlement. The platform calculates your statutory commission automatically based on trust size.

The judicial accounting system

This is one of New York's most distinctive features. Most states use an "informational" accounting system where the trustee simply provides a report to beneficiaries. New York uses a judicial accounting system through Surrogate's Court.

There are two types:

Compulsory accounting (SCPA section 2205). The court can order a trustee to file a formal account, either on its own initiative or when a beneficiary or other interested person petitions for it. If a beneficiary thinks the trustee isn't managing things properly, they can ask the court to force a formal accounting.

Voluntary accounting (SCPA section 2208). The trustee proactively petitions the court for a "judicial settlement" of their account. This is actually a smart protective move. When the court approves a judicial settlement, the trustee gets a court decree that protects them from future claims for the period covered by the accounting. It's essentially a court-approved clean bill of health.

There is no mandatory periodic accounting requirement. Unlike California or Florida, New York does not require the trustee to automatically provide an annual accounting. Trustees ordinarily account at trust termination or when they stop serving. However, there's an important exception tied to compensation (covered below).

The annual statement requirement (tied to commissions)

Here's where it gets practical. Under SCPA section 2309(4), a trustee who wants to retain annual commissions must furnish an annual statement, and the statute is specific about the mechanics:

• What: a statement of the principal assets on hand, dated no more than 30 days before the end of the trust year the trustee has selected, plus (at least annually) a statement of all receipts of income and principal during the period, including any commissions retained and how they were computed.
• Who gets it: every beneficiary currently receiving income, and any other beneficiary interested in the income. Beneficiaries interested only in principal (people who will eventually receive trust assets but aren't getting income now) are entitled to the statement on demand rather than automatically.
• Opting out: a beneficiary who doesn't want the statements can excuse the trustee in writing, unless and until they ask for them again.

This is not technically a freestanding duty to account. It's a condition of keeping your pay. Skip the statements and your commissions can be challenged or denied when your account is eventually settled. Two related protections in the statute are worth knowing: failing to take your commissions on time doesn't waive them, but the income-charged share of commissions for a given year can only come out of that year's income.

A practical rhythm that keeps trustees compliant: fold the statement into an annual trust review at the same point each year, so asset values, receipts, and commission math get documented together.

Trustee compensation in New York: the statutory commission schedule

New York is one of very few states with a statutory fee schedule for trustee compensation. Instead of the "reasonable compensation" standard used almost everywhere else, SCPA section 2309 sets specific rates. (Executors are compensated under a different statute with a different structure, SCPA section 2307, so don't mix the two schedules up.)

Annual commissions (section 2309(2)):

• $10.50 per $1,000 on the first $400,000 of trust principal (that's 1.05%)
• $4.50 per $1,000 on the next $600,000 (0.45%)
• $3.00 per $1,000 on everything above $1,000,000 (0.30%)

How the trust is valued: annual commissions are computed on the principal's value at the end of the commission year or, at the trustee's option, at the beginning of it. The choice made for the first year is binding for the life of the trust, including on successor trustees. Commissions are prorated for periods shorter than twelve months and adjusted when principal is added or partially distributed during the year.

Paying-out commission (section 2309(1)): when the trust distributes principal, the trustee is also entitled to 1% of the principal paid out, allowed when the account is settled.

How commissions are charged: one-third against trust income, two-thirds against principal, unless the trust instrument explicitly says otherwise (section 2309(3)). Trusts using the unitrust definition of income and charitable remainder trusts charge commissions to the trust corpus instead.

Multiple trustees (section 2309(6), subject to SCPA section 2313 for instruments after August 31, 1993): with principal under $100,000, one commission is apportioned among the trustees according to their services. From $100,000 to $400,000, up to two trustees can each take a full commission. At $400,000 or more, up to three can. Beyond those counts, the allowed commissions are apportioned by services unless the trustees agree in writing to a different split, and nobody can take more than one full commission.

Charitable trusts (section 2309(5)): a trustee of a trust created solely for charitable, religious, educational, or similar public purposes may take annual commissions at only 80% of the standard rates (and just 50% of the top-tier rate on principal above $20 million), and gets no paying-out commission on principal distributed.

Corporate trustees (banks and trust companies) can charge according to their published fee schedules, subject to court review (section 2312). Their fees often exceed the statutory schedule.

The document can override the schedule. The statutory rates are the default. A trust instrument can set different compensation, and family-member trustees often choose to waive commissions entirely, especially since commissions are taxable income to the trustee.

To put this in real numbers: a trustee managing a $500,000 trust would earn annual commissions of $4,200 on the first $400,000 plus $450 on the remaining $100,000, about $4,650 per year. A $1,000,000 trust works out to $4,200 plus $2,700, about $6,900 per year. A $2,000,000 trust adds $3,000 on the second million, about $9,900 per year. Principal distributions add the 1% paying-out commission on top.

Notice requirements

New York currently has no comprehensive statutory notice requirement for irrevocable trusts. There's nothing like California's 60-day notice or the UTC's standard beneficiary notification rules. The SCPA section 2309(4) annual statement is tied to commission entitlement, not a freestanding information duty.

The one area where notice is specifically required is decanting. EPTL section 10-6.6(j) requires 30-day notice to all interested persons before a decanting takes effect. Decanting is when a trustee distributes trust assets into a new trust with different terms, and New York was actually the first state in the nation to authorize this (back in 1992).

New York fiduciary income tax basics

Trust taxation is its own discipline, but every New York trustee should know the basic architecture, because it drives real filing obligations.

Federal side. An irrevocable, non-grantor trust is a separate taxpayer that files federal Form 1041 and pays tax on income it retains (income distributed to beneficiaries is generally taxed to them instead). While a trust is a grantor trust (most revocable living trusts, for example), its income is simply reported by the grantor.

New York residency. New York taxes a trust as a resident trust based on the creator, not the trustee: broadly, a trust is a New York resident trust if it was created by the will of a New York domiciliary, or funded by someone domiciled in New York when the property was transferred (Tax Law section 605(b)(3)). Resident trusts file New York's fiduciary return, Form IT-205, when they meet the filing thresholds.

The exempt resident trust rule. Under Tax Law section 605(b)(3)(D), a resident trust pays no New York income tax for a year in which all three conditions hold:

1. every trustee is domiciled outside New York,
2. the entire trust corpus, including real and tangible property, is located outside New York (intangible assets count as located in New York if any trustee is a New York domiciliary), and
3. all trust income and gains come from non-New York sources.

This is why some New York families deliberately appoint out-of-state trustees and keep trust assets outside the state. But the planning has a tail: under Tax Law section 612(b)(40), when an exempt trust later distributes accumulated income to a New York resident beneficiary, that beneficiary generally must add the accumulated income back on their own New York return (with exceptions, including income the trust earned before 2014, income earned in years the trust actually paid New York tax, and income earned before the beneficiary became a New York resident).

Trust tax mistakes tend to be expensive and quiet, so this is an area where the trustee's job is mostly to get the right professional involved early. Our guide on working with a CPA on your trust covers what that relationship should look like.

Statute of limitations for trust claims

There's no single trust-specific limitations period in New York. It depends on what type of claim is being brought:

6 years under CPLR section 213(1) for most equitable claims (like asking the court to undo a bad transaction or impose a constructive trust).

3 years under CPLR section 214(4) when the remedy is purely monetary (like suing for damages caused by a bad investment).

6 years from accrual or 2 years from discovery under CPLR section 213(8) for fraud-based claims.

An important nuance: the clock generally does not run during the trust relationship. It starts when the trustee repudiates the trust (openly acts against the beneficiaries' interests) or when the trust terminates. This means beneficiaries can sometimes bring claims about events that happened many years ago if the trustee never provided a judicial accounting to cut off liability.

This is another reason the voluntary judicial accounting is such a powerful tool for trustees. Getting a court decree settles claims for that period definitively.

New York-specific rules that catch people off guard

The Rule Against Perpetuities still applies. New York limits trust duration to "lives in being plus 21 years" under EPTL section 9-1.1. Many other states have abolished this rule or extended it to 360, 1,000, or even unlimited years. If long-term dynasty trust planning is important to you, New York is not the ideal jurisdiction. This is one reason some families move trust situs to states like Nevada, South Dakota, or New Hampshire.

Trusts default to irrevocable. Under EPTL section 7-1.16, a lifetime trust is irrevocable unless the document expressly provides that it is revocable. This is the opposite of the UTC and California, which both default to revocable. If your trust document is ambiguous on this point, New York assumes it's irrevocable. (If you're weighing which kind you need in the first place, see revocable vs. irrevocable trusts.)

New York was the first state with a decanting statute. EPTL section 10-6.6 has been in place since 1992, giving trustees the power to "pour" trust assets into a new trust with modified terms. This can be used to fix administrative problems, update outdated provisions, or restructure the trust for tax efficiency. The 30-day notice requirement to all interested persons is an important safeguard.

The unitrust election provides flexibility. EPTL section 11-2.4 allows a trustee to elect to convert an income-only trust to a 4% unitrust. Instead of distributing only actual income (dividends, interest), the trustee distributes 4% of the trust's total value annually. This can be helpful when interest rates are low and the trust is invested heavily in growth stocks that produce little current income.

TrustHelm tip: TrustHelm automatically calculates your statutory commissions under SCPA section 2309 based on your trust's current asset values. The platform tracks the one-third/two-thirds income-principal split and flags when your annual statement to income beneficiaries is due.

The most common New York trust mistakes

Not providing annual statements and losing commissions. If you're taking commissions as trustee, you must provide annual statements to income beneficiaries. Skip this, and your commissions can be challenged and clawed back.

Leaving the trust unfunded. Under EPTL section 7-1.18, the trust only controls assets actually transferred into it, and a list of assets in the document transfers nothing. A trust that was signed and then left empty accomplishes nothing. If that might be you, start with your trust is signed, now what?

Assuming the trust is revocable. New York defaults to irrevocable. If the trust document doesn't explicitly say "this trust is revocable" or "the grantor reserves the right to revoke," the trust may be permanently locked in.

Using dynasty trust strategies without considering the Rule Against Perpetuities. A trust drafted for multi-generational wealth transfer may hit the lives-in-being-plus-21-years limit in New York. If perpetual trusts are important to your plan, your attorney may recommend establishing the trust in a state that has abolished this rule.

Not seeking a voluntary judicial settlement. Many trustees manage trusts for years without ever getting a judicial settlement from Surrogate's Court. Every year without one is a year where your liability window stays open. Periodic voluntary accountings provide court-approved protection.

Ignoring the paying-out commission. When distributing principal, the trustee is entitled to a 1% paying-out commission. Many family member trustees either don't know about this entitlement or fail to properly account for it.

Confusing New York rules with UTC rules. Because so much online trust advice is based on the Uniform Trust Code, New York trustees frequently assume rules that don't apply to them (like mandatory 60-day notice to beneficiaries) while missing rules that do (like the statutory commission schedule).

How New York compares to other states

New York is one of about 14 states that have not adopted the Uniform Trust Code. Its system is distinctive in several ways:

Statutory commissions vs. reasonable compensation. Almost every other state uses a "reasonable under the circumstances" standard for trustee pay. New York gives you a specific formula with dollar amounts per thousand. This provides certainty but can result in compensation that's higher or lower than what a court in another state might consider "reasonable."

Judicial accounting vs. informational reporting. Most states have the trustee send a report to beneficiaries. New York routes accountings through Surrogate's Court, which adds formality and cost but also gives the trustee court-approved protection.

No mandatory beneficiary notice. Unlike California (60-day notice with contest deadline), Florida (60-day notice on acceptance and irrevocability), and most UTC states, New York has no comprehensive duty to notify beneficiaries about the trust's existence or changes.

Trusts have a limited lifespan. New York's lives-in-being-plus-21-years rule is much shorter than the 360-year, 1,000-year, or unlimited terms allowed in competing jurisdictions. For families planning multi-generational trusts, this is a meaningful constraint.

For how other states handle the same questions, browse our state trust law guides.

Frequently asked questions about New York trust law

How much does a trustee get paid in New York?

Unless the trust document says otherwise, SCPA section 2309 sets the pay: annual commissions of 1.05% on the first $400,000 of principal, 0.45% on the next $600,000, and 0.30% above $1 million, plus 1% of any principal paid out. On a $500,000 trust that's about $4,650 per year. Corporate trustees usually charge their own published schedules instead, and family trustees can (and often do) waive commissions.

Are New York trustees required to give beneficiaries an annual accounting?

There's no general annual accounting duty. Formal accountings run through Surrogate's Court, typically at trust termination, at a trustee change, or when a beneficiary compels one. But a trustee who retains commissions must send income beneficiaries the SCPA section 2309(4) annual statement of assets, receipts, and commissions, which functions as a yearly report in practice.

Is a New York trust revocable or irrevocable by default?

Irrevocable. EPTL section 7-1.16 makes a lifetime trust irrevocable unless the document expressly says it's revocable. Many states default the other way, which is exactly why this catches people.

Can a beneficiary have a New York trustee removed?

Yes. Under SCPA section 711, a beneficiary (or co-trustee, creditor, or other interested person) can petition Surrogate's Court to suspend or remove a trustee for causes like wasting or improperly applying trust assets, unauthorized investments, dishonesty or unfitness, ignoring court orders, or moving trust property out of state without permission.

What happens if a New York trust was never funded?

The trust is valid only as to assets actually transferred into it (EPTL section 7-1.18), so an unfunded trust controls nothing, and those assets will likely pass through probate instead. The fix is mechanical but must be done correctly: re-register titled assets in the trustee's name or execute written assignments that describe each asset with particularity.

How long can a trust last in New York?

New York still applies the Rule Against Perpetuities: roughly, lives in being at the trust's creation plus 21 years (EPTL section 9-1.1). Perpetual "dynasty" trusts aren't possible under New York law, which is why long-horizon trusts are often established in states that have abolished the rule.

When to talk to an attorney

New York's fragmented trust law makes professional guidance especially important. You should consult a New York trust attorney if: you're not sure whether your trust is revocable or irrevocable, you're not sure the trust was properly executed or funded under EPTL sections 7-1.17 and 7-1.18, you want to petition Surrogate's Court for a voluntary judicial settlement, you need to calculate commissions correctly under the statutory schedule, you're considering decanting into a new trust structure, you want to evaluate whether New York is the best jurisdiction for your trust (including the tax residency questions above), or you're a successor trustee taking over after a death and need to understand your obligations.

If you need help finding a qualified estate planning attorney in your area, your state bar association's lawyer referral service is a good place to start.

This guide is for educational purposes only and does not constitute legal advice. Consult a qualified attorney for decisions about your trust.