New York Trusts & Estate Planning: Frequently Asked Questions (2026)

If you are new to estate planning, the vocabulary alone can feel overwhelming — revocable, irrevocable, fiduciary, look-back, probate. This page is a plain-English overview written for New Yorkers who are just getting started. It is not a substitute for legal advice, but it should help you understand how trusts work under New York law and what questions to bring to a consultation.

Morgan Legal Group serves clients across the entire state — New York City, Long Island, Westchester, the Hudson Valley, and Upstate. New York trust law lives mainly in the Estates, Powers and Trusts Law (EPTL), Article 7, and that statute applies the same way no matter which county you call home.

Quick-Reference: New York Trust Basics for 2026

Topic	Key Fact
Governing statute	EPTL Article 7
Avoids probate?	Yes — assets in a funded trust skip Surrogate’s Court
Revocable trust & estate tax	Does not save estate tax (assets stay in your taxable estate)
Irrevocable trust uses	Estate-tax reduction, asset protection, Medicaid planning
Medicaid look-back	5 years for transfers to an irrevocable trust
Special Needs Trust	EPTL 7-1.12 — protects means-tested benefits
Trustee standard	Prudent-investor rule, EPTL Article 11-A
NY estate-tax exclusion (2026)	$7,350,000
NY estate-tax “cliff”	105% = $7,717,500 (exceed it, lose the entire exemption)

What is a trust, in simple terms?

A trust is a legal arrangement in which one person (the grantor) transfers assets to a trustee, who manages them for the benefit of one or more beneficiaries. New York governs trusts under EPTL Article 7. Think of it as a private rulebook for your money and property — one that can keep working while you are alive, if you become incapacitated, and after you pass away. For a fuller picture, see our Trusts Overview.

What is the difference between a revocable and an irrevocable trust?

This is the most common question we hear. The short version:

• A revocable living trust can be changed or cancelled at any time. You keep full control. Its main benefits are avoiding probate, privacy, and incapacity management. It does not reduce estate tax because the assets are still legally yours and remain in your taxable estate.
• An irrevocable trust generally cannot be amended or revoked once created. Because you give up control, the assets can be removed from your taxable estate. These trusts are used for estate-tax reduction, asset protection, and Medicaid planning.

Learn more on our Revocable Living Trust and Irrevocable Trust pages.

Does a revocable living trust save me on estate taxes?

No. This is a frequent misunderstanding. A revocable trust is wonderful for avoiding probate and managing your affairs if you become incapacitated, but because you retain the power to amend or revoke it, the assets are still counted in your estate for tax purposes. If estate-tax reduction is your goal, an irrevocable structure is the tool to discuss.

How does a trust avoid probate — and why does that matter?

When you die owning assets in your own name, those assets generally must pass through probate in the Surrogate’s Court, a public court process. A properly funded trust owns the assets instead of you, so they transfer to your beneficiaries under the trust’s terms without court involvement. The benefits are speed and privacy — a trust is private, while a probated will becomes a public record. See our Trust vs. Will comparison.

Trust vs. will — do I need both?

Most well-rounded plans include both. A will must be probated and becomes public; a trust stays private and avoids probate. Even with a trust, many people keep a “pour-over” will as a safety net to catch any asset that was never retitled into the trust. The right mix depends on your assets and goals.

What is an irrevocable trust used for — and what is the 5-year look-back?

Irrevocable trusts are central to Medicaid planning. To qualify for Medicaid long-term care, New York reviews asset transfers made during a 5-year look-back period. Transfers into an irrevocable trust before that window can help protect assets while preserving eligibility — but timing is everything, which is why planning early matters. These trusts also support estate-tax reduction and asset protection.

What is a Special Needs Trust?

A Supplemental (Special) Needs Trust (SNT), authorized under EPTL 7-1.12, holds assets for a person with disabilities without disqualifying them from means-tested benefits like Medicaid and SSI. Instead of giving money directly to your loved one (which could cut off their benefits), the trust pays for supplemental needs the way you intend. See our Special Needs Trust page.

What are the trustee’s legal duties in New York?

A trustee is a fiduciary and must act with the highest standard of care. New York imposes three core duties:

• Prudent-investor standard — invest and manage trust assets prudently under EPTL Article 11-A.
• Duty of loyalty — act solely in the beneficiaries’ interest, never the trustee’s own.
• Duty to account — keep records and report to the beneficiaries.

Choosing the right trustee — and supporting them — is its own discipline. Our Trust Administration page explains how we guide trustees.

Are trustees paid? How are commissions set?

Yes, trustees are generally entitled to compensation. New York sets fiduciary commissions by statute under the SCPA and EPTL commission schedules, rather than by guesswork. We will walk you through how the applicable schedule applies to your specific trust during planning, so there are no surprises.

What is the New York estate tax for 2026, and what is the “cliff”?

For 2026, the New York basic exclusion amount is $7,350,000. New York is unusual because of its “cliff.” If your taxable estate exceeds 105% of the exclusion — $7,717,500 — you lose the entire exemption, and the whole estate becomes taxable, not just the amount over the threshold. Estates near that line need careful planning, and the right trust structure can make a meaningful difference.

Ready to talk with a New York trusts attorney?

Every family’s situation is different, and the best plan is the one built around your assets, your goals, and your loved ones. Russel Morgan, Esq. and the team at Morgan Legal Group help clients across New York State design trusts that fit.

Schedule a 30-minute consultation with Russel Morgan, Esq.

This page is general information, not legal advice. For statutory text, see the New York Senate or Justia for the EPTL, and tax.ny.gov for current estate-tax figures.