Most people don’t come to estate planning with a statute citation in hand. They come with a worry: Will my family have to go to court? Will the State take part of my estate? Can I protect a child with a disability without ruining their benefits? This page answers the questions New Yorkers ask Morgan Legal Group most often, in plain language, with the actual New York law behind each answer.
Trusts in New York are governed by the Estates, Powers and Trusts Law (EPTL), Article 7. Below, attorney Russel Morgan, Esq. walks through what that means for you — whether you live in Manhattan, on Long Island, in Westchester, the Hudson Valley, or Upstate. The principles are the same statewide.
1. What is a trust, and why would I want one?
A trust is a legal arrangement where you (the grantor) transfer assets to a trustee to hold and manage for your beneficiaries under the rules you set. People create trusts in New York for three recurring reasons: to avoid probate, to keep their affairs private, and to plan for incapacity so someone can manage assets if you can’t. Some trusts also do estate-tax and Medicaid work — but not all of them. See our Trusts Overview for the full landscape.
2. Revocable or irrevocable — what’s the real difference?
This is the most common question we hear, and the answer drives almost every planning decision.
| Feature | Revocable Living Trust | Irrevocable Trust |
|---|---|---|
| Can you change or cancel it? | Yes — amend or revoke anytime | Generally no |
| Avoids probate? | Yes | Yes |
| Keeps your estate private? | Yes | Yes |
| Saves NY estate tax? | No — assets stay in your taxable estate | Yes — assets can be removed from your estate |
| Asset protection / Medicaid? | No | Yes (subject to the 5-year look-back) |
A revocable living trust keeps you fully in control — you can rewrite or cancel it whenever you like. Its strengths are probate avoidance, privacy, and seamless incapacity management. What it does not do is reduce estate tax: because you keep control, the assets remain part of your taxable estate. Learn more on our Revocable Living Trust page.
An irrevocable trust trades control for protection. Once funded, it generally can’t be amended, but it can move assets out of your taxable estate, shield them from creditors, and support Medicaid planning. Details are on our Irrevocable Trust page.
3. Will a trust really keep my family out of court?
Yes — that’s the headline benefit. A will must be filed and proven in the Surrogate’s Court through probate, and the file becomes part of the public record. A funded trust generally passes assets to your beneficiaries without probate and without publicity. For a side-by-side comparison, see Trust vs. Will.
4. Does a trust save me money on New York estate tax?
Only certain trusts do, and only if they’re irrevocable. Here are the 2026 numbers every New Yorker should know:
- Basic exclusion amount: $7,350,000 — estates below this owe no New York estate tax.
- The “cliff”: at 105% of the exclusion — $7,717,500 — the exemption disappears entirely.
That cliff is the trap. Cross it, and you don’t just lose the amount over the line — you lose the entire exemption, and the whole estate becomes taxable. Planning near that threshold is where an irrevocable trust can do real work. (See Trusts Overview.)
5. I have a child with disabilities. Can I leave them money safely?
Yes — through a Supplemental (Special) Needs Trust (SNT) under EPTL 7-1.12. An SNT lets you provide for a disabled loved one without disqualifying them from means-tested benefits like Medicaid and SSI. The trustee can pay for things those programs don’t cover — therapies, education, travel, quality-of-life expenses — while the benefits remain intact. This is precision work; our Special Needs Trust page explains how it’s structured.
6. What is the “5-year look-back” everyone warns me about?
If you’re using an irrevocable trust for Medicaid planning, New York applies a five-year look-back: transfers into the trust within five years of applying for certain Medicaid benefits can trigger a penalty period. The lesson is simple — plan early. The protection an irrevocable trust offers is strongest when the clock has had time to run.
7. What does a trustee actually have to do?
A trustee in New York is a fiduciary — held to the highest legal standard. Their core duties are:
- Prudent-investor standard — invest and manage trust assets prudently under EPTL Article 11-A.
- Duty of loyalty — act solely in the beneficiaries’ interest, never the trustee’s own.
- Duty to account — keep records and report to beneficiaries.
Choosing the right trustee matters as much as choosing the right trust. Ongoing management is covered on our Trust Administration page.
8. How much does a trustee get paid?
New York doesn’t leave this to guesswork. Statutory commission schedules under the SCPA and EPTL set how trustee and fiduciary commissions are calculated, rather than relying on a handshake figure. The exact amount depends on the trust’s value and activity. We’ll walk you through what applies to your situation rather than quote a number that may not fit your trust.
9. Do I need a will if I have a trust?
Usually, yes. A revocable living trust handles the assets you transfer into it, but a companion document called a pour-over will acts as a safety net for anything left outside the trust and names guardians for minor children. A complete New York plan typically pairs a trust with a will, powers of attorney, and a health care proxy.
10. I live Upstate / on Long Island / in the city. Does the same law apply?
Yes. The EPTL, the estate-tax thresholds, and the trustee standards above apply statewide. Whether your home and assets are in NYC, Long Island, Westchester, the Hudson Valley, or Upstate New York, Morgan Legal Group can build and administer a trust tailored to your family.
Ready for answers specific to your family?
General guidance only goes so far. Sit down with attorney Russel Morgan, Esq. to get a plan built around your assets, your beneficiaries, and your goals.
This page is general information about New York law, not legal advice. For guidance on your situation, consult a qualified New York estate-planning attorney. Verify current statutes at nysenate.gov and tax thresholds at tax.ny.gov.
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