Are Trusts Public Record?

If you are asking are trusts public record, it’s either because you’re trying to find a trust or you’re trying to keep your property private.

Many people would like to maintain their privacy when purchasing property. Some also prefer privacy when disposing of or managing property. In a probate proceeding, the will becomes a public record which can be accessed by all researchers. The will then becomes unattractive, especially to people with a lot of property who wish to maintain privacy in their ownership and disposition of properties.

You might have been looking for an alternative to a will that can offer more privacy and have come across the concept of trusts. You then ask, “are trusts public record?”

As a general rule, trusts are not public record. In fact, only a few classes of people are entitled to see and read the trust document. It is generally the trustee and the trust attorney who determines who should be given a copy of the trust agreement. Usually, these classes of people entitled to see the trust agreement are the: successor trustee, beneficiaries, and personal representatives (i.e., executor or administrator). However, the IRS or state taxing authority may require the submission of the trust document when filing the estate tax return.

If the trustee or trust attorney refuses to give you a copy of the trust document and you believe you are an interested person entitled to see the document, such as a beneficiary, you can petition the court to compel the production of the trust. In New York, the court with jurisdiction under SCPA 207 (1) is the Surrogate’s Court where the assets of the trust are located, where the grantor is domiciled at the time the petition was filed, or where the trustee resides.

Trusts are not public records and do not need registration in order to be effective. Even if there is a record about ownership of trust property, there is no record of who the beneficiary of the trust property is. For example, when real property is transferred to the trust, the public record will show the new owner, the trustee, such as John Smith, as Trustee of the ABC Trust. However, the public record will not reflect who the beneficiaries are, the people who ultimately benefit from the trust.

Irrevocable trusts also have to be registered with the Internal Revenue Service because they need to get their own Employer Identification Number (EIN). Here, they also need to provide the name of their beneficiaries because when distributions are made, taxes need to be paid. However, this information is not available to the public.

An exception to this rule is a charitable trust. Trusts with a current charitable interest have to be registered with the Attorney General in New York, no later than 6 months after the charitable interest becomes current. This includes charitable lead trusts, charitable remainder trusts (when the charitable remainder interest becomes current), and trusts with wholly charitable purposes, including private foundations and public charities organized in trust form.

Generally, however, trusts are not registered in New York. If you are interested in establishing a trust, we at the Law Offices of Albert Goodwin are here for you. We have offices in New York City, Brooklyn, NY and Queens, NY. You can call us at 212-233-1233 or send us an email at [email protected].

What "Not Public Record" Means in Practice

The privacy of trusts is one of their most-cited benefits. Compared to wills, which become public documents when admitted to probate, trusts remain private documents held by the trustee. The privacy has several practical dimensions:

• The document itself is not filed publicly. Unlike a will, no part of the trust agreement is filed with any court or registry under normal circumstances.
• Beneficiary identities are not publicly disclosed. Who receives what from the trust is known only to the trustee, the beneficiaries themselves, and any third parties to whom the trustee provides limited information.
• The trust's assets are not publicly inventoried. Unlike probate, where an inventory may be filed, the trust's holdings are not part of any public record.
• Distributions are not publicly reported. The trustee distributes to beneficiaries without filing any public document about the distribution.

This privacy is durable as long as the trust is administered privately. If the trust becomes the subject of court litigation, however, the privacy is largely lost — court filings are public.

The Real Estate Exception

The one area where trust ownership is publicly visible is real estate. When a trust owns real property, the deed showing the transfer to the trust is recorded at the City Register or County Clerk. Anyone searching the public records can see that "The Smith Family Trust" owns 123 Main Street.

What is not publicly recorded is the trust agreement itself. The recorded deed shows only that the trust owns the property — not who the beneficiaries are, not who controls distributions, not what happens at the grantor's death. The deed is a public record of ownership; the trust's substantive terms remain private.

Families who want maximum privacy sometimes give the trust a generic name that does not identify the family. "The Maple Avenue Realty Trust" reveals less than "The Goodwin Family Trust." The choice of name is a matter of preference and the level of anonymity desired.

Tax Identification Numbers and the IRS

Irrevocable trusts need their own Employer Identification Number (EIN) from the IRS for tax purposes. The EIN application identifies the trust, the trustee, and certain other information. The application is filed with the IRS but is not a public record.

Revocable trusts during the grantor's life typically use the grantor's Social Security Number rather than a separate EIN. The trust's income is reported on the grantor's personal tax returns. After the grantor's death, the trust becomes irrevocable and obtains its own EIN.

Reporting Obligations Within the Trust

While the trust is not part of the public record, the trustee has reporting obligations to the beneficiaries. The beneficiaries are entitled to know about the trust's existence, the trustee's identity, the terms of the trust as they affect the beneficiaries' interests, and the trust's activity over time.

This information is private — shared between the trustee and the beneficiaries but not with the public. The beneficiaries can choose to share what they know with others, but the trustee's obligation is only to the beneficiaries.

What Triggers Loss of Privacy

The trust's privacy can be lost in several scenarios:

Litigation. If the trust becomes the subject of court proceedings — a contest, an accounting, a removal proceeding, a construction proceeding — the filings become public records. Trust documents attached to filings become available.

Voluntary disclosure. A beneficiary may share information about the trust with third parties. The trustee should remind beneficiaries about confidentiality but cannot prevent voluntary disclosure.

Charitable trust registration. Trusts with a current charitable beneficiary register with the New York Attorney General's Charities Bureau and file periodic reports that are public.

Beneficial ownership reporting. Certain entities owned by trusts may be required to report beneficial ownership information to FinCEN under the Corporate Transparency Act. The reporting is not fully public but is accessible to authorized government agencies.

Discovery in unrelated litigation. A beneficiary or trustee involved in unrelated litigation may be required through discovery to disclose information about the trust.

Strategies to Maximize Privacy

Families who prioritize trust privacy can take additional steps:

• Give the trust a generic name that does not identify the family.
• Use Certifications of Trust rather than the full trust document when dealing with third parties (banks, brokers).
• Keep the trust's bank accounts and brokerage accounts at institutions with strong privacy policies.
• Avoid using the trust for transactions where public disclosure would be required (publicly traded shareholder filings, for example).
• Limit who within the family knows the full terms of the trust.
• Address confidentiality expectations in the trust document.

Comparing to Other Estate Planning Tools

The privacy of trusts is one of several factors in choosing planning tools. Comparison:

• Will: Public when filed for probate.
• Revocable trust: Private, except real estate transfers and certain tax filings.
• Irrevocable trust: Private, except real estate transfers, certain tax filings, and charitable trust registration where applicable.
• Joint accounts: Account holdings are not public, but the survivorship transfer is reflected in account records that may be accessible in some contexts.
• Beneficiary designations: Generally private to the financial institution and the named beneficiary.

For clients who value privacy, a revocable trust as the central planning tool, supplemented by careful use of beneficiary designations and joint ownership, produces the strongest privacy outcome.