Trusts for Mixed-Status Families in New York

If your family includes a mix of U.S. citizens, green-card holders, and non-citizens, a New York trust can still protect your home, your savings, and your loved ones—but the rules shift depending on each person’s immigration status. The short answer: yes, you can plan, your foreign relatives can inherit your New York property, and tools like a Qualified Domestic Trust (QDOT) exist precisely to solve the problems mixed-status families face. The catch is that estate planning (New York state law) and immigration (federal law) are two separate tracks, and a smart plan respects both.

Meet the Garcias: A Typical New York Mixed-Status Family

Imagine the Garcia family in Queens. Maria is a naturalized U.S. citizen who owns the family home. Her husband, Daniel, is a lawful permanent resident (green-card holder) but not yet a citizen. Their adult son, Luis, lives abroad and has never held U.S. status, and their younger daughter, Ana, was born here and has a developmental disability. One household—four different legal situations. Each one changes how Maria should structure her plan.

Without planning, New York’s default rules take over. If Maria dies without a will, intestacy under EPTL Article 4 decides who gets what. A will under EPTL §3-2.1 requires two attesting witnesses, the testator’s signature at the end, and publication—but a will still goes through the New York Surrogate’s Court probate process. A revocable living trust under EPTL Article 7 lets the Garcias avoid probate entirely, keeping the transfer private and faster (note: a revocable trust avoids probate but offers no estate-tax savings).

Why a Non-Citizen Spouse Changes Everything

Here is the single most important point for the Garcias. Normally, a spouse can inherit an unlimited amount estate-tax-free thanks to the unlimited marital deduction. But that deduction does not apply when the surviving spouse is not a U.S. citizen. Because Daniel is a green-card holder and not a citizen, assets passing to him could face estate tax that a citizen spouse would never owe.

The standard fix is a QDOT (Qualified Domestic Trust). Assets pass into the QDOT for Daniel’s benefit, deferring the federal estate tax until distributions are made or he passes away. If Daniel later naturalizes, the picture may change again. This is exactly the kind of situation where the difference between a plain will and a trust becomes financially significant.

Keep New York’s own estate tax in mind too. For 2026, the basic exclusion is $7,350,000, with a sharp “cliff” at 105%—$7,717,500. An estate that crosses the cliff loses the entire exemption, not just the excess. Mixed-status families with significant assets should plan around that edge carefully.

Planning for Foreign Heirs and a Child with Special Needs

Two more Garcia concerns:

Family member	Concern	New York tool
Luis (foreign, non-resident)	Can he inherit the NY home?	Yes. Non-resident/non-citizen status does not bar inheritance, but adds documentation and tax-withholding steps.
Ana (disability)	Protecting benefits	A special needs trust under EPTL 7-1.12
Daniel (non-citizen spouse)	Estate-tax exposure	A QDOT
Maria (citizen owner)	Avoiding probate; possible Medicaid	Revocable trust (probate) or irrevocable trust (5-year Medicaid look-back)

For Ana, a special needs trust preserves her access to government benefits while still providing for her. For longer-term care planning, an irrevocable trust can offer asset protection and Medicaid eligibility—but remember the 5-year look-back period, so timing matters. Maria should also sign a durable power of attorney (GOL §5-1513, the 2021 statutory short form) and a health care proxy (Public Health Law Article 29-C).

Where Immigration Law Comes In—And Where It Doesn’t

This is where families get confused. Immigration is federal law, handled through USCIS, while trusts and estates are New York state law. They do not overlap, and no estate plan can change someone’s immigration status. A trust will not sponsor Luis, speed up Daniel’s naturalization, or affect a pending green-card case.

So the honest approach is to use the right specialist for each side. Our firm handles the New York estate and trust matters. For the federal immigration questions—family-based petitions, green cards, naturalization—families should consult a family immigration lawyer in Florida. Because immigration is federal, that attorney can represent New York clients anywhere in the U.S., and Fitenko Law also serves Russian- and Ukrainian-speaking families, which helps when documents and conversations need a shared language.

Frequently Asked Questions

Can my relatives who live abroad inherit my New York home?
Yes. Non-resident and non-citizen heirs can inherit New York property. Their status does not bar inheritance, but expect extra documentation and possible tax-withholding steps.

My spouse has a green card but isn’t a citizen. Do we need a QDOT?
Often, yes. The unlimited marital deduction does not apply to a non-citizen surviving spouse, and a QDOT is the standard tool used to defer estate tax in that situation.

Will a trust help with our immigration case?
No. Trusts are New York state law; immigration is federal law. They are separate—an estate plan cannot change anyone’s immigration status.

Does a revocable living trust save estate taxes?
No. A revocable living trust avoids probate but provides no estate-tax savings. For tax reduction or Medicaid planning, an irrevocable trust is the relevant tool (subject to the 5-year look-back).

Next Steps for Your Family

For the New York estate and trust side—QDOTs, special needs trusts, probate avoidance, and Medicaid planning—consult Morgan Legal Group. You can review our trusts overview or schedule a conversation at calendly.com/russel-morgan/30min.

For the federal immigration side—family-based petitions, green cards, and naturalization—reach out to the family immigration lawyer referenced above. Using the right specialist for each track is how mixed-status families like the Garcias get a plan that actually holds up.