Most people who ask us about trusts have one thing in common: they have been meaning to “get around to it.” The hard truth is that estate planning rewards the people who act early and quietly punishes those who wait. A trust only protects you if it is signed, funded, and in force before the day you actually need it — before incapacity, before a long-term care crisis, before a death in the family freezes everything in court.
Below are the questions New Yorkers ask us most often. Each answer is grounded in the New York Estates, Powers and Trusts Law (EPTL) and, where relevant, the urgency built into the rules themselves. We serve clients statewide — New York City, Long Island, Westchester, the Hudson Valley, and Upstate. When you are ready to stop putting it off, you can book a consultation with attorney Russel Morgan.
The Basics
What law governs trusts in New York?
New York trusts are governed primarily by the Estates, Powers and Trusts Law (EPTL), Article 7. This statute defines how trusts are created, what trustees may do, and how the interests of beneficiaries are protected. Because the framework is statutory, a trust drafted correctly today does not “expire” — but the assets and circumstances it is meant to protect can change overnight, which is why having a valid trust in place matters more than having one drafted “someday.”
What are the main types of trusts I should know about?
| Trust type | Can you change it? | Primary purpose | Saves NY estate tax? |
|---|---|---|---|
| Revocable living trust | Yes — amend or revoke anytime | Avoid probate, privacy, incapacity management | No |
| Irrevocable trust | Generally no | Estate-tax reduction, asset protection, Medicaid planning | Yes (when properly structured) |
| Supplemental / Special Needs Trust | Varies by structure | Preserve means-tested benefits for a disabled beneficiary | Depends on design |
You can read more on our Trusts Overview page, which compares each option in depth.
What is a revocable living trust, and why do people use it?
A revocable living trust lets you, the grantor, keep full control of your assets during your lifetime — you can amend it, revoke it, or move property in and out as you wish. Its core benefits are that it avoids probate, keeps your affairs private, and provides seamless incapacity management if you become unable to handle your own affairs. What it does not do is reduce estate tax: the assets remain part of your taxable estate. Learn more on our Revocable Living Trust page.
The urgency point here is incapacity. A revocable trust only manages your affairs during incapacity if it was signed and funded while you still had capacity. Wait too long, and the door closes — leaving your family in a court-supervised guardianship instead.
Tax, Protection, and Timing
What is an irrevocable trust used for?
An irrevocable trust generally cannot be amended once created. People accept that loss of control in exchange for powerful benefits: estate-tax reduction, asset protection from future creditors, and Medicaid planning. The catch — and the reason “today” matters — is the 5-year look-back. Transfers into a Medicaid asset-protection trust must generally be made at least five years before you apply for long-term care Medicaid. Every year you delay is a year of protection you can never get back. See our Irrevocable Trust page for details.
How does the New York estate tax work in 2026 — and why is there a “cliff”?
For 2026, New York’s basic exclusion amount is $7,350,000. But New York has an unusual and unforgiving feature: an estate-tax cliff at 105% of the exclusion — $7,717,500. Here is what that means in practice:
- An estate at or below $7,350,000 owes no New York estate tax.
- An estate over $7,717,500 loses the entire exemption — the tax applies to the whole estate, not just the amount above the threshold.
This is one of the sharpest “act now” issues in New York planning. Falling just over the cliff can cost a family hundreds of thousands of dollars that careful, advance planning — often using irrevocable trusts and lifetime gifting — could have avoided. A revocable trust will not solve this, because those assets stay in your taxable estate.
Can a trust protect a loved one with disabilities without cutting off their benefits?
Yes. A Supplemental Needs Trust (SNT), also called a Special Needs Trust, is authorized under EPTL 7-1.12. It lets you set aside funds for a disabled beneficiary while preserving their eligibility for means-tested benefits such as Medicaid and SSI. Done correctly, the trust supplements — rather than replaces — government assistance. Done late or incorrectly, an inheritance or settlement can disqualify your loved one from benefits they depend on. Visit our Special Needs Trust page to learn more.
Trustees, Wills, and Getting Started
What are a trustee’s duties in New York?
A trustee is a fiduciary held to demanding standards under New York law, including:
- The prudent-investor standard under EPTL Article 11-A, requiring careful, diversified management of trust assets.
- A duty of loyalty — acting solely in the beneficiaries’ interest.
- A duty to account to beneficiaries, providing transparency about how the trust is managed.
New York’s Surrogate’s Court Procedure Act (SCPA) and the EPTL set out the commission schedules that govern trustee compensation. We help families choose and guide trustees on our Trust Administration page.
Trust vs. will — do I really need a trust if I already have a will?
They do different jobs. A will is a public document that must be probated in the Surrogate’s Court after you die — a process that takes months, costs money, and exposes your affairs to public record. A trust avoids probate entirely and keeps your estate private, with assets passing to your beneficiaries without court delay.
The “today” lesson: a will does nothing until you die and then sends your family into court. A funded trust keeps them out of court and gives them immediate access when they need it most. Compare the two on our Trust vs. Will page.
Why shouldn’t I just wait until I’m older or wealthier to set up a trust?
Because the events that make a trust necessary do not wait for you:
- Incapacity can strike at any age. A revocable trust only helps if it exists before you lose capacity.
- The 5-year Medicaid look-back means asset-protection trusts must be funded well in advance — there is no way to “catch up” later.
- The estate-tax cliff rewards multi-year, advance planning; last-minute moves rarely work.
- Probate is automatic if you have no trust — your family inherits delay, cost, and publicity by default.
Planning early is not about pessimism. It is about making sure the protections you want are already locked in on the day they matter. The cheapest and most effective time to create a trust is always before you think you need it.
If you have been meaning to “get to it,” let this be the nudge. Schedule a 30-minute consultation with Russel Morgan, Esq. and put your New York trust in place — today, while it is still easy.
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