Most people don’t come to us with statute citations — they come with worries. Will my family have to go through probate? Can a trust protect my home from a nursing home? Will I lose control of my own money? This page answers the questions we hear most often from New Yorkers across NYC, Long Island, Westchester, the Hudson Valley, and Upstate.
Every answer below is grounded in New York law — primarily the Estates, Powers and Trusts Law (EPTL) Article 7 — and reflects the 2026 estate-tax landscape. If you’d rather just talk it through, you can schedule a consultation with attorney Russel Morgan, Esq. at any time.
Quick Reference: Trust Basics at a Glance
| Question | Short Answer |
|---|---|
| What law governs NY trusts? | EPTL Article 7 (justia.com) |
| Does a revocable trust save estate tax? | No — assets stay in your taxable estate |
| Does an irrevocable trust help with Medicaid? | Yes, subject to the 5-year look-back |
| 2026 NY estate-tax exclusion | $7,350,000 |
| The estate-tax “cliff” (105%) | $7,717,500 — above it, you lose the entire exemption |
| Trustee investment standard | Prudent-investor rule (EPTL Article 11-A) |
1. What exactly is a trust, and how is it different from a will?
A trust is a legal arrangement where one person (the trustee) holds and manages property for the benefit of another (the beneficiary), under terms you set as the grantor. The key practical difference from a will comes down to two words: probate and privacy.
A will must be filed and proven in the Surrogate’s Court — a public process that becomes part of the court record. A trust generally avoids probate entirely and stays private. For a side-by-side comparison, see our Trust vs. Will page.
2. Will a trust really help my family avoid probate?
Yes — that’s one of the main reasons New Yorkers set them up. Assets properly titled in a trust pass to your beneficiaries under the trust’s terms without Surrogate’s Court probate. The catch is funding: a trust only avoids probate for the assets actually transferred into it. An unfunded trust on a shelf does nothing. Learn more on our Trusts Overview.
3. What’s the difference between a revocable and an irrevocable trust?
This is the single most common question we get, so here’s the plain-English version:
- Revocable (living) trust: You keep full control. You can amend it or revoke it entirely while you’re alive. Its strengths are avoiding probate, privacy, and managing your affairs if you become incapacitated. What it does not do: save estate tax — the assets remain part of your taxable estate. See Revocable Living Trust.
- Irrevocable trust: Generally cannot be changed once created. In exchange for giving up control, you gain powerful tools: estate-tax reduction, asset protection, and Medicaid planning. See Irrevocable Trust.
4. Can a trust really protect my home from nursing-home costs?
Often, yes — but timing is everything. An irrevocable trust can be used for Medicaid planning, removing assets like your home from what Medicaid counts. The critical rule is the 5-year look-back: transfers into the trust must generally be made at least five years before applying for long-term-care Medicaid, or they can trigger a penalty period. A revocable trust offers no such protection because you retain control. Because timing drives the outcome, this is a plan to start sooner rather than later.
5. If I create a revocable trust, do I lose control of my money?
No. A revocable living trust is designed so you keep your hands firmly on the wheel. You can serve as your own trustee, move assets in and out, change beneficiaries, amend terms, or revoke the whole thing. You only give up control with an irrevocable trust — and that trade-off is what makes asset protection and tax planning possible. It’s a deliberate choice, not a hidden cost.
6. I have a child with disabilities. How do I provide for them without ending their benefits?
This is one of the most important questions a parent can ask. A direct gift or inheritance can disqualify a loved one from means-tested benefits like Medicaid and SSI. A Supplemental (Special) Needs Trust (SNT) — authorized under EPTL 7-1.12 — solves this. It holds funds to enhance your loved one’s quality of life without counting as their personal resource, preserving eligibility. See our Special Needs Trust page.
7. Will a trust lower my estate taxes?
It depends on the type. A revocable trust will not — those assets stay in your taxable estate. An irrevocable trust can move assets out of your estate and reduce exposure. Here’s why that matters in New York in 2026:
- The basic exclusion amount is $7,350,000.
- New York has an estate-tax “cliff” at 105% of the exclusion — $7,717,500.
- If your taxable estate exceeds the cliff, you lose the entire exemption — the whole estate is taxed, not just the excess.
That cliff makes proactive planning especially valuable for estates near the threshold. Current figures are published by the NYS Department of Taxation and Finance.
8. Who should I name as my trustee, and what are they responsible for?
Your trustee can be a trusted family member, a professional, or a combination. Whomever you choose takes on serious fiduciary duties under New York law:
- Prudent-investor standard — manage trust investments with care and skill (EPTL Article 11-A).
- Duty of loyalty — act solely in the beneficiaries’ interests.
- Duty to account — keep records and report to beneficiaries.
Trustees may be entitled to commissions under the schedules set out in New York’s SCPA and EPTL. We help families both choose the right trustee and manage these obligations through our Trust Administration service.
9. Is a trust only for wealthy people?
No. While estate-tax planning matters for larger estates, most of the benefits of a trust — avoiding probate, privacy, planning for incapacity, and protecting a vulnerable beneficiary — have nothing to do with net worth. New Yorkers of all means use trusts. The right structure depends on your goals, not just your balance sheet.
10. How do I get started?
Start with a conversation. We’ll review your family situation, assets, and goals, then recommend the structure — revocable, irrevocable, SNT, or a combination — that fits. You can book a 30-minute consultation with Russel Morgan, Esq. and we serve clients throughout New York State.
This page is general information, not legal advice. New York trust and tax law is detailed and fact-specific; consult Morgan Legal Group before acting. Statutory text is available at the New York State Senate and Justia.
Have a question about your estate?
Talk it through with Russel Morgan — free 30-minute consult.
Further reading from Morgan Legal Group: .