New York Trusts Explained: What Every New Yorker Should Know First

If you have heard the word “trust” and are not sure whether you need one — or what kind — this page is for you. New York trusts are governed by EPTL Article 7, and the right choice depends on your goals: avoiding probate, protecting assets, or preserving benefits for a loved one.

The Four Trust Types That Matter Most in New York

Trust Type	Can You Change It?	Primary Purpose	Avoids Estate Tax?
Revocable Living Trust	Yes — anytime	Probate avoidance, privacy, incapacity management	No — assets stay in your taxable estate
Irrevocable Trust	Generally no	Estate-tax reduction, asset protection, Medicaid planning	Yes, if structured correctly
Special Needs Trust (SNT) — EPTL 7-1.12	Varies by type	Preserves Medicaid/SSI for a disabled beneficiary	No
Trust Administration (successor trustee role)	N/A	Carrying out the trust after the grantor’s death or incapacity	N/A

Trust vs. Will: The Key Difference

A trust avoids the Surrogate’s Court probate process entirely and stays private. A will is a public court record and must be probated before assets transfer. For most New Yorkers with moderate-to-large estates, a funded revocable trust is the more flexible starting point.

Why the 2026 NY Estate Tax Cliff Matters

New York’s basic exclusion is $7,350,000 in 2026. Estates exceeding 105% of that figure ($7,717,500) hit a “cliff” and lose the entire exemption — making irrevocable trust planning critical before you cross that line. See NY Department of Taxation for current rates.

Every Trustee Owes Fiduciary Duties

Under EPTL Article 11-A, every trustee must follow the prudent-investor standard, act with undivided loyalty to beneficiaries, and render regular accountings. Choosing the right trustee is as important as choosing the right trust.

Explore all trust types on our trusts overview or schedule a 30-minute consultation with Russel Morgan, Esq. — serving clients across New York City, Long Island, Westchester, the Hudson Valley, and Upstate New York.