How long after conveyance to a trust by creditors does the trust terminate?

• A. Five years
• B. Ten years
• C. Twenty years
• D. Never

Answer: (B)

Trusts created to hold assets for the payment of creditors are limited in duration. In New York, such a creditor-focused trust is not allowed to run forever—the term is fixed at ten years from the date of conveyance. This finite horizon prevents perpetual control of property and aligns with the aim of resolving debts within a predictable period. If debts are satisfied earlier, the trust ends sooner; otherwise, it terminates at the ten-year mark, with remaining assets distributed according to the trust terms or applicable law. Hence ten years is the correct duration.