In recent years, there’s been a big increase in people using trusts to buy homes in Manhattan. A trust is a legal way to hold and manage property, often set up by parents or family members. In 2024, about 28% of all Manhattan property sales involved a trust. That’s a major jump compared to just 17% in 2021. Trusts are often used to hide the identity of the true owner, but in this case, they’re mostly being used by wealthy parents who want to help their kids buy expensive homes.

Parents Are Paying the Bill

According to real estate agents, many young buyers can’t afford Manhattan prices without help from their families. In high-end neighborhoods like Tribeca, West Village, and SoHo, nearly one out of every three condo sales involves a trust. That usually means someone’s parents paid for it. The child’s name might be on the trust, but the money comes from mom and dad. It’s part of a growing trend where young adults—especially in cities like New York—rely on their parents for help getting started in the real estate market.

Trusts Are Replacing LLCs

Before, people used LLCs (limited liability companies) to buy real estate if they wanted privacy or legal protection. But new rules now require LLCs to report more information about who owns them. That’s why wealthier families are turning to trusts. Trusts can still offer a layer of privacy and are often easier to manage legally. Plus, if a family is trying to pass wealth to the next generation, a trust is a good tool to do that without having to go through complicated legal processes later.

A New Way to Pass Down Wealth

What’s happening in Manhattan is part of a much bigger national shift. Experts say that over the next 20 years, trillions of dollars will be passed down from parents to their children. This is called the “great wealth transfer.” In New York, this often takes the form of real estate. Families with money are buying property for their children, not just to help them, but also to make sure the family wealth keeps growing through real estate investments.

Without Family Help, It’s Nearly Impossible

Let’s face it—buying property in NYC isn’t cheap. A condo in Brooklyn now costs around $1.3 million, and single-family homes can cost double that. Even with a good job, most young adults can’t afford those prices on their own. So family help isn’t just nice to have—it’s often the only way to get into the market. Using a trust to buy a home has become a symbol of privilege in New York. It highlights the growing gap between families who have wealth to pass on and those who don’t.