Most people don’t wake up wanting a trust. They wake up worried — about probate dragging on, about a child with special needs losing benefits, about the nursing-home bill, or about keeping family business private. A trust is simply a legal tool that answers those worries. This page is built around the questions New Yorkers across the state — from Manhattan and Brooklyn to Long Island, Westchester, the Hudson Valley, and Upstate — actually ask us. We’ve kept the language plain and the law accurate, citing the New York Estates, Powers and Trusts Law (EPTL) where it governs.
If you’d rather talk it through with a person, attorney Russel Morgan, Esq. and the team at Morgan Legal Group are glad to help. Schedule a consultation here.
What is a trust, and how is it different from a will?
A trust is an arrangement where one person (the grantor) transfers assets to a trustee, who holds and manages them for beneficiaries under written instructions. New York trusts are governed by EPTL Article 7.
The difference people care about most is what happens after death:
- A will is a set of instructions that only takes effect at death. It is filed with the Surrogate’s Court, it must be probated, and it becomes a public record.
- A trust can take effect during your life and continue seamlessly after death. Assets titled in the trust avoid probate and stay private.
That single difference — public court process versus private administration — is why so many New York families choose to build their plan around a trust.
Want the side-by-side breakdown? See our dedicated page on Trust vs. Will.
“Which trust do I actually need?” — the three most common types
New Yorkers ask about dozens of trust names, but the vast majority of planning comes down to three core categories.
| Question on your mind | Trust that answers it | Key New York rule |
|---|---|---|
| “I want control now, but no probate later.” | Revocable living trust | Grantor may amend or revoke at any time |
| “I want to protect assets and plan for Medicaid or estate tax.” | Irrevocable trust | Generally cannot be amended; 5-year Medicaid look-back applies |
| “I have a loved one with disabilities and can’t risk their benefits.” | Supplemental / Special Needs Trust | EPTL 7-1.12; preserves means-tested benefits |
The revocable living trust — control without the courthouse
A revocable living trust lets you keep full control. You can serve as your own trustee, move assets in and out, and amend or revoke the trust whenever you like. Its three primary benefits are:
- Avoiding probate on the assets it holds.
- Privacy, because it is not filed in public court.
- Incapacity management, because a successor trustee can step in immediately if you become unable to manage your affairs — without a court guardianship.
One honest caution New Yorkers should hear: a revocable trust does not save estate tax. Because you keep control, the assets remain part of your taxable estate. Learn more on our Revocable Living Trust page.
The irrevocable trust — protection that requires letting go
An irrevocable trust generally cannot be amended once created. In exchange for giving up control, you gain powerful planning tools:
- Estate-tax reduction, by moving assets out of your taxable estate.
- Asset protection from certain future creditors.
- Medicaid planning, so assets may be sheltered from long-term-care costs — subject to the 5-year look-back period, which means transfers must generally be made at least five years before applying for Medicaid.
This is the trust people reach for when the goal is to shield wealth or qualify for benefits, not to retain day-to-day control. Details live on our Irrevocable Trust page.
The Special Needs Trust — benefits stay intact
A Supplemental (Special) Needs Trust (SNT), authorized under EPTL 7-1.12, lets you provide for a disabled loved one without disqualifying them from means-tested benefits like Medicaid and SSI. The trust pays for extras that improve quality of life while the beneficiary keeps the programs they rely on. See our Special Needs Trust page.
“Will a trust lower my estate tax?” — the 2026 New York numbers
This is one of the most misunderstood questions in New York planning. Whether a trust reduces estate tax depends entirely on whether it’s revocable (no — assets stay in your estate) or irrevocable (potentially yes — assets can be moved out).
The New York estate-tax thresholds for 2026 are:
| Figure | 2026 amount |
|---|---|
| Basic exclusion amount | $7,350,000 |
| “Cliff” threshold (105% of exclusion) | $7,717,500 |
New York has a feature that surprises many families: the estate-tax cliff. If your taxable estate exceeds $7,717,500, you don’t just pay tax on the excess — you lose the entire exemption, and the whole estate becomes taxable. For estates near that line, planning with irrevocable trusts can be the difference between owing little and owing a great deal.
“Who runs the trust, and can I trust the trustee?”
The trustee holds real legal responsibility. Under New York law, a trustee owes fiduciary duties to the beneficiaries, including:
- The prudent-investor standard under EPTL Article 11-A, requiring careful, diversified, and reasonable investment of trust assets.
- A duty of loyalty, meaning the trustee must act solely in the beneficiaries’ interest — not their own.
- A duty to account, meaning the trustee must keep records and report to beneficiaries about how the trust is managed.
Trustees in New York may be entitled to commissions under the schedules set out in the SCPA and EPTL; the exact amounts depend on the type and size of the trust and the work performed. The point families should take away is that a trustee is accountable — and choosing the right one matters. Our Trust Administration page explains what trustees must do once a trust is operating.
Common Questions From New Yorkers
Q: Do I still need a will if I have a trust?
A: Usually yes. Most plans pair a trust with a “pour-over” will that catches any assets not titled in the trust and directs them into it. The will also names guardians for minor children. A trust handles probate avoidance; a will handles the gaps. Compare the two on our Trust vs. Will page.
Q: Can I change my mind after I create a trust?
A: It depends on the type. A revocable living trust can be amended or revoked at any time while you’re alive and competent. An irrevocable trust generally cannot be changed once established — which is exactly why it offers tax and asset-protection benefits. Choosing between them is one of the most important decisions in your plan.
Q: Will a trust protect my home from nursing-home costs?
A: An irrevocable trust can shelter assets, including a home, for Medicaid planning purposes — but only if it’s set up at least five years before you apply, because of the 5-year look-back. A revocable trust does not provide this protection. Timing is everything, so earlier planning gives you more options.
Q: My child receives Medicaid and SSI. How do I leave them money safely?
A: Use a Supplemental (Special) Needs Trust under EPTL 7-1.12. Leaving assets directly to a beneficiary on means-tested benefits can disqualify them. An SNT lets the funds enhance their life while preserving eligibility. See Special Needs Trust.
Q: Does putting assets in a trust mean I lose control of them?
A: Only if you choose an irrevocable trust. With a revocable living trust, you keep complete control — you can be your own trustee, spend, sell, and amend freely. The “loss of control” trade-off applies only when you specifically want the protections that come with irrevocability.
Ready to choose the right trust?
The right trust depends on your goals — probate avoidance, privacy, incapacity protection, tax planning, asset protection, or caring for a loved one with disabilities. Because New York’s rules (the 5-year look-back, the estate-tax cliff, and the EPTL Article 7 framework) carry real consequences, this is not a place for guesswork.
Attorney Russel Morgan, Esq. and Morgan Legal Group serve clients across New York State — New York City, Long Island, Westchester, the Hudson Valley, and Upstate. Schedule your consultation here to map out the plan that fits your family.
Authoritative resources: EPTL on the New York State Senate site · New York estate tax (tax.ny.gov) · EPTL 7-1.12 (Justia)
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