If you are creating a trust, serving as a trustee, or inheriting as a beneficiary, you usually have one question above all others: what do I do next? This FAQ is built as a checklist of plain answers for New York families and fiduciaries — from New York City and Long Island to Westchester, the Hudson Valley, and Upstate. Trusts in New York are governed by the Estates, Powers and Trusts Law (EPTL) Article 7, and the answers below cite only the statutes that actually apply.
Use the questions to find your situation, then follow the linked service pages for the deeper “how-to.”
Quick reference: the most-asked NY trust facts
| Topic | Key fact (New York, 2026) | Authority |
|---|---|---|
| Trust law | All express trusts | EPTL Article 7 |
| Revocable trust | Avoids probate, adds privacy, manages incapacity — but no estate-tax savings | EPTL Art. 7 |
| Irrevocable trust | Used for estate-tax reduction, asset protection, Medicaid (5-year look-back) | EPTL Art. 7 |
| Special needs trust | Preserves Medicaid/SSI for a disabled beneficiary | EPTL 7-1.12 |
| Trustee standard | Prudent-investor rule, loyalty, duty to account | EPTL Article 11-A |
| Estate tax exclusion | $7,350,000 basic exclusion | tax.ny.gov |
| Estate tax “cliff” | Over $7,717,500 (105%) loses the entire exemption | tax.ny.gov |
1. What is a trust, and how is it different from a will?
A trust is a legal arrangement where a trustee holds and manages property for beneficiaries under terms you set as the grantor. The practical difference from a will is two-fold: a trust avoids probate and stays private, while a will is a public document that must be filed and probated in the Surrogate’s Court before assets can pass.
Next step: if privacy and probate-avoidance matter to you, compare the two on our trust vs. will page before choosing.
2. Revocable or irrevocable — which trust do I need?
It depends on your goal:
- Choose a revocable living trust if you want to keep full control, amend or revoke at any time, avoid probate, and plan for incapacity. Note that it does not reduce estate tax — assets remain in your taxable estate.
- Choose an irrevocable trust if your goal is estate-tax reduction, asset protection, or Medicaid planning. It generally cannot be amended, and Medicaid eligibility is subject to the 5-year look-back.
Next step: read the revocable living trust and irrevocable trust pages, then decide based on whether control or protection is your priority. Our trusts overview compares all options.
3. Does a revocable living trust save estate taxes in New York?
No. This is the single most common misconception. A revocable trust avoids probate and provides privacy and incapacity protection, but because you keep the power to amend or revoke it, the assets remain in your taxable estate. For tax savings you must look to an irrevocable structure.
Next step: if your estate is near the New York thresholds, see Question 7 and book a planning call.
4. What is a special needs trust, and when do I need one?
A supplemental (special) needs trust (SNT) lets you leave assets to a disabled loved one without disqualifying them from means-tested benefits like Medicaid and SSI. It is authorized under EPTL 7-1.12. Without it, an outright inheritance can cut off the exact benefits your family member relies on.
Next step: if a beneficiary receives, or may need, government benefits, start with our special needs trust page.
5. What are a trustee’s legal duties in New York?
A New York trustee is a fiduciary and must follow:
- The prudent-investor standard (EPTL Article 11-A) — invest as a prudent investor would, considering the whole portfolio.
- The duty of loyalty — act solely in the beneficiaries’ interest, never self-deal.
- The duty to account — keep records and report to beneficiaries.
Next step: if you have just been named trustee, our trust administration page is your action checklist.
6. I was just named trustee. What do I do first?
A practical first-steps checklist:
- Locate the signed trust instrument and read it fully.
- Secure and inventory all trust assets.
- Obtain a tax ID for the trust if required and open a trust account.
- Notify and identify the beneficiaries.
- Apply the prudent-investor standard to the existing investments.
- Set up records so you can account to beneficiaries.
Next step: walk through each task with our trust administration guide, then schedule a call if any step is unclear.
7. How does the New York estate tax affect my trust planning in 2026?
In 2026, New York provides a basic exclusion amount of $7,350,000. New York also has a “cliff”: if your taxable estate exceeds 105% of the exclusion — $7,717,500 — you lose the entire exemption, and the estate is taxed from the first dollar. This makes planning critical for estates near the threshold, and is a core reason families use irrevocable trusts.
Next step: if your estate is approaching $7.35M, review the irrevocable trust page and book a planning session.
8. Are trustee commissions and fees set by statute?
Yes — New York’s SCPA and EPTL contain statutory commission schedules that govern how trustees are compensated. Rather than guess, you should have your specific situation reviewed against the applicable schedule, because the figures depend on the trust’s value and the trustee’s role.
Next step: ask us to review the commission rules that apply to your trust on a planning call.
9. Will my trust avoid probate completely?
A trust avoids probate only for the assets actually titled in the trust’s name. This is why “funding” the trust — retitling accounts and property — is essential. Assets left outside the trust may still pass through Surrogate’s Court.
Next step: confirm your trust is fully funded; our trusts overview explains funding.
10. How do I get started with Morgan Legal Group?
The simplest next step is a conversation. Attorney Russel Morgan, Esq. and the Morgan Legal Group team help New York families across the state design, fund, and administer trusts.
Book a 30-minute consultation: Schedule with Russel Morgan.
This page is general information, not legal advice. New York trust and tax rules are detailed and fact-specific; consult Morgan Legal Group about your situation. Statutory references: EPTL on NY Senate · EPTL 7-1.12 on Justia · NY estate tax.
Further reading from Morgan Legal Group: New York estate planning.