If you have ever lain awake wondering what would happen to your home, your savings, or your children if something happened to you, this page was written for you. A trust is one of the most powerful tools New York gives you to answer those worries with certainty instead of anxiety. Done right, it keeps your family out of court, protects what you have worked a lifetime to build, and lets the people you love grieve without also fighting over paperwork.
At Morgan Legal Group, attorney Russel Morgan, Esq. helps New Yorkers across the entire state — from the five boroughs of New York City to Long Island, Westchester, the Hudson Valley, and Upstate — build trusts that actually do what families expect them to do. This guide walks you through what a trust is, the kinds New York recognizes, and how to choose the one that fits your life.
What a Trust Really Is (in Plain English)
A trust is a private legal arrangement where you (the grantor) hand assets to a trustee, who manages them for the people you choose (your beneficiaries) under the rules you set. New York trusts are governed by the Estate Powers and Trusts Law (EPTL) Article 7.
Think of it as a set of instructions that keeps working even when you cannot — whether you have passed away or simply can no longer manage things yourself. Unlike a will, which only speaks after death and must pass through court, a properly funded trust can step in immediately and quietly, sparing your family delay, expense, and public exposure.
A trust is not a stand-alone fix. It works best as one part of a coordinated estate plan that also includes a will, a durable power of attorney, and a health care proxy. Each document covers a gap the others leave open.
The Main Types of New York Trusts
Most families we serve use one of three trusts — or a combination. Here is how they compare.
| Trust Type | Main Purpose | Avoids Probate? | Estate-Tax Savings? | You Keep Control? |
|---|---|---|---|---|
| Revocable Living Trust | Avoid probate, keep privacy, plan for incapacity | Yes | No | Yes — change or revoke anytime |
| Irrevocable Trust | Tax reduction, asset protection, Medicaid planning | Yes | Yes | Limited — terms are locked in |
| Supplemental (Special) Needs Trust | Provide for a loved one without losing benefits | Yes | Varies | Trustee-managed |
The Revocable Living Trust — Flexibility and Peace of Mind
A revocable living trust is the workhorse of New York estate planning. You stay in full control: you can be your own trustee, move assets in and out, change the terms, or cancel it entirely while you are alive and competent.
Its biggest gift to your family is avoiding probate. When assets are titled in the trust, they pass to your beneficiaries privately and without the court supervision that a will requires. That means no public filing of your affairs, less delay, and fewer opportunities for disputes.
One honest caution, because you deserve straight answers: a revocable trust does not save estate taxes. Because you keep full control, the assets are still counted as yours for tax purposes. What it buys you is privacy, speed, and a smooth plan for incapacity — real benefits, just not tax ones.
The Irrevocable Trust — Protection That Goes Deeper
When your goals include shielding assets, reducing estate tax, or qualifying for Medicaid, an irrevocable trust is often the answer. Here you give up some control — the terms generally cannot be changed once set — and in exchange the assets can move outside your taxable estate and beyond the reach of many creditors.
For families worried about the staggering cost of long-term care, this is especially important. New York’s Medicaid program imposes a 5-year look-back on transfers into an irrevocable trust. That means assets must generally be in the trust for five years before they stop counting against your eligibility for nursing-home Medicaid. The lesson is simple and urgent: the best time to plan is before you need care, not after.
The Supplemental (Special) Needs Trust — Caring Without Disqualifying
If you love someone with a disability, you face a painful trap: leaving them money the ordinary way can strip them of Medicaid and SSI benefits they depend on. A Supplemental Needs Trust under EPTL 7-1.12 solves this. It holds funds for your loved one’s benefit while preserving their eligibility for public benefits — paying for comforts, therapies, and quality-of-life extras that government programs never cover. It is one of the most loving documents a parent or grandparent can sign.
Trusts and the New York Estate Tax in 2026
For higher-net-worth families, trusts and tax planning go hand in hand. Here are the New York numbers you need for 2026 — and one trap that catches the unprepared.
- Basic exclusion amount: $7,350,000 for deaths on or after January 1, 2026 through December 31, 2026. Estates under this amount generally owe no New York estate tax.
- The “cliff”: New York does not phase out its exemption gently. If your taxable estate exceeds 105% of the exclusion — $7,717,500 — you lose the entire exemption and are taxed from the first dollar. Falling just over the cliff can cost hundreds of thousands of dollars.
- Progressive rates: New York’s estate tax runs from 3% to 16%.
- No gift tax — with a catch: New York has no gift tax, but any gifts made within 3 years of death are added back into your taxable estate.
This is exactly where an irrevocable trust earns its keep: thoughtful, early transfers can move assets out of your taxable estate and keep your family on the safe side of that cliff. For a deeper walkthrough, see our New York estate tax guide.
A note just for you: if your estate is anywhere near $7 million, please do not guess. The cliff is unforgiving, and the planning that avoids it takes time to season. A short conversation now can protect a great deal later.
How a Trust Fits With Your Will, POA, and Health Care Proxy
A trust is powerful, but it cannot do everything. A complete New York plan layers four documents so that no gap is left uncovered:
- Your Will — Governed by EPTL §3-2.1, a valid New York will requires two attesting witnesses, your signature at the end of the document, and publication (declaring it to be your will). Even with a trust, you need a “pour-over” will to catch anything left out. Dying without a will means intestacy under EPTL Article 4, where the State, not you, decides who inherits.
- Your Trust — Holds and protects assets, avoids probate, and carries your wishes forward.
- Your durable Power of Attorney — Under GOL §5-1513, New York’s power of attorney is durable by default and uses the 2021 statutory short form. It lets a trusted person handle your finances — including funding the trust — if you become unable.
- Your Health Care Proxy — Under New York Public Health Law Article 29-C, this appoints an agent to make medical decisions for you. It is separate from your financial power of attorney, and you need both.
Together, these four documents speak for you in every situation life can bring — whether you are healthy, incapacitated, or gone.
Why New Yorkers Statewide Choose Morgan Legal Group
Trust law is unforgiving of shortcuts. A trust that is drafted but never funded — meaning your assets are never actually re-titled into it — protects no one. A revocable trust used where an irrevocable one was needed can waste years of Medicaid look-back time. These are the details that decide whether your family is protected or stranded.
Russel Morgan, Esq. and the team at Morgan Legal Group draft trusts for clients across all of New York and make sure they are funded, coordinated, and built around your real goals — your home, your business, your children, your peace of mind. Wherever you live in the state, you can learn more on our statewide guide.
Frequently Asked Questions
Do I still need a will if I have a trust?
Yes. Even with a fully funded trust, you should have a “pour-over” will. New York wills must follow EPTL §3-2.1 — signed at the end before two witnesses with publication. The will catches any asset that never made it into the trust and names guardians for minor children, which a trust alone cannot do.
Will a revocable living trust lower my estate taxes?
No. Because you keep full control of a revocable trust, its assets stay in your taxable estate. It avoids probate and protects your privacy, but estate-tax savings require an irrevocable trust. For 2026, New York’s exclusion is $7,350,000, with a cliff at $7,717,500.
What is the 5-year look-back for Medicaid?
When you transfer assets into an irrevocable trust for asset protection, New York’s Medicaid program looks back 5 years at those transfers when deciding eligibility for nursing-home care. Assets generally must be in the trust for five years before they no longer count — which is why early planning matters so much.
Can a trust protect a loved one with special needs?
Yes. A Supplemental Needs Trust under EPTL 7-1.12 holds money for a person with a disability while preserving their Medicaid and SSI eligibility, paying for extras those programs do not cover.
Does New York have a gift tax I should worry about?
New York has no gift tax. However, gifts made within 3 years of death are added back into your taxable estate, so timing matters when planning around the estate-tax cliff.
Ready to protect what matters most? Speak with attorney Russel Morgan, Esq. about the right trust for your family. Schedule your consultation »
Further reading from Morgan Legal Group: how trusts fit an estate plan.