Trusts & Real Estate. Buying for the Next Generation.

There's been a lot written lately about the rise of trusts in New York City real estate. Almost 25% of purchases are now being made through trusts — a striking number. It's part of a broader trend among families who want to invest smartly, maintain privacy, and plan for the next generation.

What happens in New York City often sets the tone for the Hamptons — so goes the Hamptons, we sometimes say. (Although I’ll add, that wasn’t true during COVID — our market soared while New York took a hit.) But in this case, it makes sense that we’re following the city’s lead. Maybe even more sense. New York City can expand. We can't. Our inventory is limited not just by geography, but by zoning laws and a real commitment to preserving the character of our communities.

Just this month, I spoke with a client who wants to buy a home near their own — specifically to make sure their children will always have a summer place close by. They're setting it up through a trust. Smart move. Trusts — particularly irrevocable ones — have become a preferred way to purchase high-value real estate. They can help reduce estate taxes, shield assets from potential creditors, and ensure a smooth transfer of property to the next generation. They also offer privacy, which is increasingly valuable in high-profile areas like ours.

To get a broader view, I reached out to a few experts I work regularly with, for their take on the matter. 

Andrew Stern, Managing Director and Partner at Beacon Pointe, shared his perspective, "Families are rethinking their portfolios. Real estate is being treated more like an asset class — not just a lifestyle purchase. Buying through a trust gives families a structured, tax-aware way to protect that investment for decades to come.”

And, Trevor Darrell, Esq., Real Estate Attorney at Fleming & Darrell PLLC, added, "A trust isn't just about privacy. It's about clarity — creating a clean, defined path for ownership and inheritance. It helps avoid probate complications and ensures that the property stays in the family, according to the family's wishes.”

I believe this shift will influence the Hamptons market in a big way both this year and even more so in 2026. Families are looking ahead. They're diversifying outside of stocks, building generational legacies, and seeing the long-term value of securing real estate in a market with naturally limited growth.

Of course, trust purchases aren't simple. Setting one up correctly takes collaboration with a great legal and financial team to make sure everything is tailored to your family's goals.

Bottom line? I think we'll see more families owning multiple homes here — and not always with rental income in mind. This is about building futures, not just portfolios.

If you're thinking about how to plan for your family's next generation, let's talk. It's one of my favorite conversations to have.

– Sarah Minardi (SMinardi@Saunders.com)

P.S. Funny enough, a client reached out to me just a few days ago asking if she and her husband would need to get an updated Certificate of Occupancy if they moved their home from their names to a trust or LLC. Short answer is no. It's staying in the same hands, just under a different name of ownership.

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