Most people who research trusts in New York do not need another encyclopedia entry — they need to know what to do. This page is built as a working checklist. It explains what a trust is, walks through the main types governed by New York’s Estates, Powers and Trusts Law (EPTL) Article 7, and then lays out the concrete next steps so you can move from “I should look into this” to a signed, funded plan that actually protects your family.
Morgan Legal Group, led by attorney Russel Morgan, Esq., builds and administers trusts for clients across New York State — New York City, Long Island, Westchester, the Hudson Valley, and Upstate. Wherever you live in New York, the same EPTL framework applies, and the same practical steps move your plan forward.
What a Trust Actually Does (in Plain Terms)
A trust is a legal arrangement in which one person (the grantor) transfers assets to a trustee, who holds and manages them for one or more beneficiaries under written instructions. Done correctly, a trust lets you:
- Pass assets to your family without probate, keeping the transfer private;
- Plan for incapacity, so someone you trust can manage your affairs without a court guardianship;
- In some cases, reduce estate tax exposure, protect assets, or preserve government benefits.
Not every trust achieves every goal. The type you choose determines what you get — which is exactly why the first step is matching the tool to your objective.
The Main Types of New York Trusts
| Trust Type | Can You Change It? | Primary Use | Avoids Probate? | Reduces NY Estate Tax? |
|---|---|---|---|---|
| Revocable Living Trust | Yes — amend or revoke anytime | Probate avoidance, privacy, incapacity planning | Yes | No (assets stay in your taxable estate) |
| Irrevocable Trust | Generally no | Estate-tax reduction, asset protection, Medicaid planning | Yes | Yes (when properly structured) |
| Supplemental / Special Needs Trust | Generally no | Preserves means-tested benefits for a disabled beneficiary | Yes | Depends on structure |
Revocable Living Trust
A revocable living trust is the workhorse of New York estate planning. You stay in full control: you can amend it, revoke it, name yourself as trustee, and use the assets exactly as before. Its core benefits are probate avoidance, privacy, and seamless incapacity management — if you become unable to act, your successor trustee steps in without a court proceeding.
One critical caveat: a revocable trust does not save estate tax. Because you keep control, the assets remain part of your taxable estate. If your goal is tax reduction, this is the wrong tool. Learn more on our revocable living trust page.
Irrevocable Trust
An irrevocable trust generally cannot be amended once created — and that rigidity is the point. By giving up control, you can move assets out of your taxable estate, shield them from certain creditors, and plan for long-term care. Irrevocable trusts are central to Medicaid planning, but they are subject to the five-year look-back: transfers made within five years of a Medicaid application can trigger a penalty period. Timing matters enormously. See our irrevocable trust page for details.
Supplemental / Special Needs Trust (SNT)
A supplemental (special) needs trust, authorized under EPTL 7-1.12, lets you provide for a loved one with a disability without disqualifying them from means-tested benefits such as Medicaid and SSI. Assets in a properly drafted SNT supplement — rather than replace — public benefits, covering things those programs do not. This is delicate drafting; small errors can cost a beneficiary their eligibility. Our special needs trust page explains how it works.
Trust vs. Will: Why the Difference Matters
A common question: do I need a trust if I already have a will? They are not interchangeable.
- A will is public and must be probated in the Surrogate’s Court before assets can be distributed. Probate takes time, becomes part of the public record, and can be contested.
- A trust generally avoids probate entirely and keeps your affairs private. Assets pass under the trust’s terms without court supervision.
Most well-built New York plans use both: a trust to hold and pass the main assets, and a “pour-over” will as a backstop for anything left outside the trust. For a full comparison, see trust vs. will.
What a Trustee Must Do: Fiduciary Duties
Choosing a trustee is one of the most consequential decisions in the entire process, because a New York trustee is a fiduciary held to strict legal standards:
- Prudent-investor standard — under EPTL Article 11-A, the trustee must invest and manage trust assets with care, skill, and diversification appropriate to the trust’s purpose.
- Duty of loyalty — the trustee must act solely in the beneficiaries’ interest, never for personal gain.
- Duty to account — the trustee must keep records and report to the beneficiaries.
Trustees in New York are entitled to commissions under the schedules set out in the SCPA and EPTL. (We will not quote a specific number here — commissions depend on the trust’s value and structure — but the statutory schedules govern.) The day-to-day work of running a trust is its own discipline; our trust administration page covers it.
New York Estate Tax in 2026: Know the Cliff
If estate-tax planning is part of your motivation, you need to understand New York’s unusual “cliff.”
- The 2026 basic exclusion amount is $7,350,000. Estates below this generally owe no New York estate tax.
- New York imposes a cliff at 105% of the exclusion — $7,717,500. An estate valued over the cliff loses the entire exemption, not just the excess, and is taxed from the first dollar.
That cliff is precisely why a properly structured irrevocable trust can be worth so much: moving assets out of the taxable estate can be the difference between paying nothing and paying tax on the whole estate. A revocable trust, by contrast, offers no help here because the assets stay in your estate.
Your Practical Next-Steps Checklist
Here is the sequence we walk clients through. Use it as your roadmap.
1. Define your primary goal. Probate avoidance and privacy? Estate-tax reduction? Long-term-care/Medicaid protection? Providing for a disabled loved one? Your goal selects the trust type.
2. Inventory your assets. List real estate, bank and brokerage accounts, retirement accounts, business interests, and life insurance. Note how each is titled and who the beneficiaries are.
3. Match the tool to the goal. Revocable for control and probate avoidance; irrevocable for tax and asset protection; SNT for a beneficiary on benefits. Many plans combine them.
4. Choose your people. Name a trustee (and a successor), and consider a corporate co-trustee for large or complex trusts. Pick beneficiaries and contingent beneficiaries.
5. Draft with New York counsel. EPTL Article 7, the five-year look-back, and the estate-tax cliff all have traps. Statute-specific drafting is what separates a trust that works from one that fails when tested.
6. Fund the trust — do not skip this. An unfunded trust protects nothing. Retitle accounts and deeds into the trust’s name and update beneficiary designations. This single step is where most do-it-yourself plans break down.
7. Coordinate the rest of your plan. Pair the trust with a pour-over will, durable power of attorney, and health care proxy.
8. Review every few years and after major life events — marriage, divorce, a birth, a death, a sale, or a move into or out of New York.
If you are not sure which step you are on, that is the right reason to talk to an attorney. You can schedule a consultation with Russel Morgan, Esq. to map your next move.
Frequently Asked Questions
Does a revocable living trust lower my New York estate tax?
No. Because you keep full control and can revoke it, the assets remain part of your taxable estate. A revocable trust is excellent for avoiding probate, protecting privacy, and managing incapacity — but for estate-tax reduction you generally need a properly structured irrevocable trust.
What is the five-year look-back, and why does it matter for trusts?
When you apply for Medicaid long-term care, New York reviews asset transfers made in the five years before your application. Transfers into an irrevocable trust during that window can create a penalty period of ineligibility. This is why Medicaid-focused trusts must be funded well in advance — timing is everything.
What happens if I do not fund my trust?
Nothing the trust was designed to do will happen. A trust only controls assets that have actually been retitled into it. An unfunded trust does not avoid probate and does not protect assets. Funding — retitling accounts, deeds, and beneficiary designations — is an essential, non-optional step.
Do I still need a will if I have a trust?
Usually, yes. Most New York plans pair a trust with a “pour-over” will that captures anything left outside the trust at death. The will is public and must be probated in Surrogate’s Court, while the trust stays private — using both gives you a complete safety net.
Can a trust protect benefits for a disabled family member?
Yes — a supplemental (special) needs trust under EPTL 7-1.12 lets you provide for a disabled beneficiary while preserving means-tested benefits like Medicaid and SSI. The drafting must be precise, because errors can jeopardize eligibility.
Take the Next Step
Trusts reward planning and punish improvisation. The right structure, drafted under New York’s EPTL and funded correctly, can save your family probate, taxes, and stress. Start by defining your goal and inventorying your assets — then let an experienced New York attorney match the tool to the job.
Morgan Legal Group serves clients statewide across New York. Schedule a 30-minute consultation with Russel Morgan, Esq. to begin your trust plan today.
This page is general information, not legal advice. Statutes and exemption figures cited reflect 2026 New York law. See the New York Senate’s EPTL, Justia’s EPTL collection, and the New York Department of Taxation and Finance for primary sources. Consult an attorney about your specific situation.
Further reading from Morgan Legal Group: the revocable living trust explained.